if your IRA buys a quadplex and you end up renting a unit?

[Pat Bahn]

i know the general rule is if you receive benefit from the IRA that's a taxable distribution, but what if you are paying the IRA fair market value?

essentailly i'd be paying rent to my future self...

[Jon Holdman]

In 11 years it absolutely will still matter. Your IRA is a separate legal entity from you. As long as it owns the fourplex, it cannot rent to you, any of your ancestors, any of your descendants, or any company controlled by any of those people. Further, it cannot sell to any such person or company.

Your age is irrelevant. What matters is whether the property is in the IRA or not. Once you get to the proper age, your IRA can do an in kind distribution, and distribute the property to you. Since its a Roth there is no tax at that point. But you still have to worry about the distribution rules and you have to go through the distribution process.