All Forum Posts by: Jeffrey Dixon

It is not difficult to move a Simple IRA as long as the account is over 2 years old.

I believe the LLC would trigger the UBIT. You should discuss that with a tax attorney.

The Solo k is not exempt to UBIT. It is exempt to the UDFI tax. They are often lumped together, but are separate taxes. UBIT comes into play when investing into a business, like a PPM. 

Hi Jim, 

You can not use your own property management company to handle real estate owned by your IRA. You are a prohibited party to your IRA assets and by extension, so is a company you own.

@Peter Thielemann, in regards to using IRA funds as a down payment.

When an IRA borrows funds or invests in a business that uses financing it can lead to a tax called Unrelated Debt Financed Income Tax (UDFI). You can read more about this tax at www.IRS.gov Pub 598. The Solo k is generally exempt to this tax if used for purchase acquisition or home improvement.

Most lenders do not make loans to IRA's. There are some who do. They generally want 40-50% down payments.

Hi Clay,

You can move money in an 401k from a former employer to a Self-Directed IRA. IRA's can buy rental properties. Financing is allowed, but the loan is to the URA, not to you. It is generally 40-50% down. There is a tax called Unrelated Debt Financed Income tax (UDFI) that your IRA is subject to when financing is used.