All Forum Posts by: Brett Synicky

Something you might consider is moving some/all of your pre-tax or Roth funds into a self directed ira and investing in real estate.  Or a solo 401(k) since that won’t have ubit on leveraged real estate. 
learn more here:   Solo 401(k)
 SDIRA

@Huiping S. if you have a mortgage then the SDIRA will have ubit and a 990t will need to be filed.  Your cpa can help with that.  

@Ashley Dennis

I think people should consider owning real estate personally (tax benefits) and inside of their retirement account.  As you know since you're over 59.5 you can take distributions without penalties so you'll have to decide that along with your tax professional.   I think you should have a conversation with a CFP who understands self directed retirement accounts and your CPA before you decide what to do.  

@Martin Kim many of our clients invest in private funds that loan to fix and flippers as an example.  You can get well over 5% doing this.  $30k is enough to get started.  

@Ashley Dennis Are you looking for an attorney to review the paperwork involved in purchasing real estate?  Or are you looking for guidance on setting up an SDIRA?   I ask because there is little difference in the mechanics of a real estate transaction inside of or outside of a retirement account.  What specific guidance are you looking for?

 If this is a qualified retirement account (tsp’s are) then you can transfer/roll this into an SDIRA or solo 401k and as long as the custodian allows for alternative asset investing you can invest in real estate or just about whatever you want.  You can learn more about both here:   SDIRA Solo 401(k)

Depending on the amount of transactions you’ll do it may make sense to have checkbook control.  Hope this helps!

If you're self employed with no w2 employees working more than 500 hours annually other than you and your spouse, you can qualify for a Solo 401k which has benefits the SDIRA does not have.  You can learn more here:  Solo401(k)

Additionally it should be noted that the Roth IRA is the only QRA that cannot be rolled into a 401k. So if you wanted to invest in alternative assets using your existing Roth IRA you'd have to do so in a SDIRA. With the SDIRA you can have pre-tax or Roth but they're two separate IRA's. With The Solo 401(k) pre-tax and Roth are included in the same plan.

Also be sure to check out the difference between full custodial vs. checkbook control.   

Happy investing!   

@Zehua Zhou A CPA like @Michael Plaks can help you out with the details on this.   But you're missing a key number, how much is the income?   Once you get to around $14k you're going to scale up to $37% but you can deduct half the expenses and depreciation which will reduce your taxable amount of income..again without knowing the income this is not possible to calculate.   Once you figure that out, definitely check with a tax professional who understands self-directed retirement accounts.  

@Sheri Ayoub

As long as the proceeds from the sale go back into the IRA LLC bank account there are no taxes. Mom's IRA could not buy out brothers half since her son and her are disqualified parties to each others retirement accounts, so a sale to a 3rd party is best in this situation.

@Michael Calhoun Interesting. Never heard of this.