Real Estate in a Conversion to Roth SDIRA

[Chuck Mak]

My SD401K has owned a small apartment building for a couple of years.

In the new year, I plan to convert unused office space into a 2-bedroom rental unit and, in 2013 or 2014, put up a new small apt building on available land.

Being at a fairly low tax bracket, I plan to set up a Roth SD401K, move cash from regular SD401K over the course of a few years, pay the income tax for the conversion, and do the above 2 small projects under my Roth SD401K.

I assume it is not a problem that my regular SD401K and Roth SD401K each owns apt units, 4 and 4, of the same deeded property.

I set up a new LLC and new bank account for the Roth. Rent checks go to the respective bank accounts. No problems there?

Little tough splitting up the property value though.

Any advice is appreciated.