Best way to pay yourself?

[Dave Grosse]

Hey everyone - I have very little knowledge of how to structure the financial part of my business.

I know a self directed ira can be a good place to put profits and also to buy new properties, but what's the best way to pay myself...in other words, how can I put cash in my pocket without getting slammed with taxes?

Thanks!

[Jon Holdman]

If you mean "how can my IRA make an investment that will put money in my pocket right now" then the answer is you cannot. Your IRA cannot make any investment that would in any way benefit you personally. That's a prohibited transaction and the result is that the IRA is immediately considered to be distributed in its entirety and you're immediately responsible for taxes (and penalties, if applicable.)

If you're over 59 1/2, then you can start taking withdrawls.

If you mean how can you best invest your IRA to generate the maximum returns, then that's a holy grail of investing.

Now there are Solo 401k accounts and ways to arrange an IRA to start a business and that might have a way for you to get paid by the business, if that's what you mean.