All Forum Posts by: Jeffrey Dixon

You can not earn a commission, or referral fee on the purchase and sale of the properties your IRA engages in. You cannot be the agent of record for no commission. You cannot use your property management company either. That is self-dealing and is not permitted.

Darryl,

You cannot take a personal loan from any IRA. 401k plans allow personal loans to be taken from them.

You would not pay personal taxes on the sale of the property. However, when an IRA borrows money, there is a tax that your IRA would incur. It is Unrelated Debt Financed Income tax (UDFI). All IRAs are subject to this tax. You would need to file a 990t tax return on behalf of your IRA each year.

Your father cannot loan you or your LLC money or invest into your LLC. The only thing your LLC could do with your father's IRA is buy real estate jointly, own it jointly, collect rent and pay bills according to % of ownership and sell the property. Neither of you could do any physical work on these properties, stay in the properties or use personal funds on the properties.

A Self-Directed Inherited IRA will allow you to invest in assets like real estate. However, you will still need to take all the cash or assets out in the next 10 years.

You need to make sure you do not do any work yourself on these properties, use any personal funds or stay in the property. Close family members cannot do these actions either. 

You cannot move a Roth IRA into a Solo 401k. It can only be moved to a different Roth IRA account.

Yes a Solo 401k can buy real estate, as long as the account is with a company that allows real estate as an asset or is set up where the accountholder is acting as their own custodian. 

There are companies that can reinstate the 401k plan where you act as your custodian and have a checking account over all the funds. 

You cannot buy the assets in your IRA. You can get the asset appraised and then request a distribution of that amount. Instead of receiving cash, you are sent the asset and a re-assignment letter so you can title the asset into your own name. You will also get a 1099-R on that amount which you will pay taxes on.