OK for a Self Directed IRA to own a MH?

Question

I've heard that self directed IRA's should not purchase or own MH's. I've heard MH's are classified as personal property since they have a title like a car.

1st. Is this true?

2nd. Would it be ok to buy a MH together with the land even if MH is not de-titled? Not sure if that would make a difference.

Thanks for all replies!

John Underwood · Answer

I have a self directed ROTH IRA and a ROTH Solo 401k so that wouldn't be a problem.

An attorney told us at a REIA meeting that this was Taboo. I know of at least one person that sold a MH based on this information.

Attorneys are not all created equal and you should confirm or question information that doesn't sound right. I have had more than one tell me stuff that I knew was not correct.

Taylor L. · Answer

Not a SDIRA expert (do have one my own though) - Advanta IRA seems to say in this article that you can own a mobile home in a SDIRA https://www.advantaira.com/blo...

Per this article on Motley Fool, the tangible personal property rule is related to its collectible nature under IRC Section 408(m). It seems this rule is more targeted to collectibles or items that could be collectibles. Which it'd be hard to construe a mobile home as. But - I'm not an advisor and you should talk to one.

Matt Calhoun · Answer

Yeah, obviously advice may vary based on the attorney or advisor. I understand the arguments as to why they are cautious.  However, nothing expressly prohibits the IRA from owning a MH. As Taylor L mentioned, Only life insurance and collectibles are prohibited asset classes.

Michael Plante · Answer

These are questions for your accountant

😁

Merry Christmas

Matt Calhoun · Answer

Hello, John

There is nothing that would not allow for a SDIRA to own a mobile home. The Custodian for your SDIRA may have a hard time administering that asset for a couple of reasons. I would think most would recommend holding the MH in a checkbook control LLC for your SDIRA. This way the LLC manager has the ability to sign for title, or go to DMV/ government office in person for the MH. Something your IRA admin would not be willing to do.

OK for a Self Directed IRA to own a MH?

Most Popular Reply