What would you do - SDIRA or Distribution ??

[Jorge Suarez]

I have a small retirement IRA account from a previous employer (a little over 20K).

I would like to use this money to purchase an investment property along with some savings that I have.

I have been looking to put the money into a self-directed IRA so I can use the money without having to pay a Distribution Fee (the penalty for using the regular IRA funds)

From what I have been seeing if I go with a checkbook control SDIRA I must pay to open an LLC (approx $800) plus the yearly fee (approx $300)

If I go with a custodian directed IRA every transaction (withdrawal, deposit, etc.) will incur a fee. Plus I will have a yearly fee (approx. $300)

With all the fees would it just be better to pay Distribution fee (approx 10% = $2k) and the taxes it will incur?? and im done.

Or is having a SDIRA still worth it??

Thanks!!

[John Underwood]

I converted an old employer 401k to a self directed ROTH check book control IRA. I paid the tax.

I started buying tan liens, some turned into houses that I rented.

I never contributed a penny more or borrowed any money. It is now worth around 300k and growing quickly.