All Forum Posts by: Chris Wosnitzer

Keith J. -- your not able to withdraw money out of a current employers 401k to roll into a SDIRA only after separation of service. The employers plan documents also usually dictate what you can invest in as well, stocks bonds, mutual funds etc. and what mutual fund companies you can invest with as well. If you have other 401ks at prior employers, or bank ira etc those can be rolled into a SDIRA.

My opinion is that your IRA/401K is not really yours until you take a withdrawal and pay the taxes! It is a tax deferred account to be used sometime in the future.

If you borrow money from your IRA (even though it is your money) treat it like it is any other lender... It should always be a separate line item as debt service. YOU are not earning the interest YOUR IRA IS...which is a tax deferred instrument.

if you do not pay it back you personally subjected to income tax on the distribution and possibly an IRS 10% early withdrawal penalty.

A loan from the 401k is a Debt/liability to your business/person and an asset/investment for your 401k.

Keep your 401k and your business separate If you keep that in mind it will also help you to in avoiding prohibited transactions once you open an SDIRA.

Just to confuse you some more you could take the loan from the 401k and use it for anything you like or even open a SDRoth!!

I agree with Seth about a $10 option deposit especially if the property in question is attached to an EPA remediation plan property. I would think that there may be some overflow side effects to selling/reselling a property next door to my county dump even if it was all cleaned up.

Is there a lot of action on the property or has it been sitting for awhile? This also may help determine how to structure the deal.

Clay W. You never now what a seller will accept until you try...keep your own head trash (as I call it) out of the deal, it depends on each sellers circumstances.

I also use Equity Trust as a custodian...and as they explained it UBIT was only in the case that the IRA borrowed money towards a deal, not when it was a buy and hold nor as a fix and flip as long as all gains went back to the IRA. I also just had my taxes completed and my accountant he did not mention anything about UBIT on the 2 deals I did in my IRA last year.

Please clarify why the IRA would be subject to UBIT? Is it subject to UBIT when it sells a stock for a 20% gain? If not why would a gain on RE be taxable if all proceeds go back to IRA??

I would calculate that as debt service...because if you do not pay it back you are subject to income tax on the distribution and possibly an IRS 10% early withdrawal penalty. You are not earning the interest your IRA is...which is a tax deferred instrument.

Have you tried a Self Directed IRA...much easier and your IRA pays no taxes until you withdraw the money for personal use...unless its a Roth IRA than it may be tax free depending on your circumstances.