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Updated almost 8 years ago on . Most recent reply
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Using IRA Funds Under LLC
Hi Everyone,
I am just starting out in the real estate investing game, by just starting out I mean still putting together funds, and I have a question regarding Self Directed IRAs being used under an LLC. I would like to roll a couple of 401Ks that I currently have from previous employers into a self directed IRA and use those funds to buy and rent out a property to generate some cash flow. From what I have gathered creating an LLC and purchasing the property under the LLC is the best way to go, could be wrong open to other ideas, to limit the liability I hold with the rental property. What I am unsure of is, if I am using funds from my IRA is that going to "pierce the corporate vial" rendering the LLC pointless. Also how would this then work with income generated, from a tax perspective, meaning, the gains are earned by the LLC but needing to be put back into the IRA I would assume. Any tips or comments are more than welcome. I am eager to learn and want to make sure I am well educated with a solid plan before purchasing my first property. -Thanks, Josh