Rollover IRA as self directed in real estate

[Linda Dorothy]

Is anyone familiar with a self directed IRA in rental real estate? What do I need to consider before rolling over my IRA into property? Is there a $ limit? What are the restrictions?

Thank you!

[Glenna Wood]

Both IRA types can be rolled into self directed IRAs but they cannot be combined unless you also do a conversion to a Roth at the same time. Set up a "checkbook control" LLC in your SDIRA if you are going to buy real estate with it. You can't do any self work on the properties since this would increase the value of your property via sweat equity so you will/may need a property manager for rentals (get advice). There are many SDIRA custodians online so take the time to research their fees and services to pick the best fit. Once your account is established then start the paperwork for the rollover from your current custodian. Make sure you understand the rules about self-dealing in SDIRAs and potential tax reporting situations like UBIT. Some planners advise against active rentals in SDIRAs.