Selling to a Prohibited Party AFTER taking a property out of SDIRA?

[Daniel Dietz]

Hello,
I have not been able to find this specific topic in the archives, so here goes.

Scenario; An individual purchases a house as a rental property within their SDIRA, AFTER they have turned 59 1/2. They then hold it for any number of years from 1 year to say 5 years. They then 'withdrawal' that property out of their SDIRA just like a monetary withdrawal. Once it is out of the SDIRA, is there a certain time limit before they can sell it to a 'prohibited party', such as a child or grand child?

A side question is can the actual property be taken as a withdrawal, as in moving ownership of it out of the SDIRA (after age 59 1/2), or does it need to be 'sold' while still owned by the SDIRA? It seems the second option would put a big hole in the idea of enjoying say a Lake Rental property you had for years when you retire.

Thanks,

Dan Dietz

[Michael Lauther]

I have been advised that I can distribute property out of the IRA but it would require apraisals and of course It would generate ordinary income tax liability. This is a matter to discuss with your custodian and an attorney but once the property is distrubuted you should be able to dispose of it as you wish.