Flip Tip Summary
When using self-directed IRA’s, it’s important to play by the rules set by the IRS. There’s a lot of bad info out there, and Kaaren Hall sets us straight in this FlipNerd.com Flip Tip…check it out!
Flip Tip Transcript:
Mike Hambright: Hey it’s Mike Hambright from flipnerd.com. We have a quick V.I.P. tip to share with you from Karin Hall, a self directed IRA expert, who’s going to give a tip on self directed IRA rules.
Karin Hall: Thanks so much Mike. Just touching on a few things. When it comes to self directed IRAs, the IRS has laid out lots and lots of rules, and I’m just going to touch on of a couple of them. You can find these at irs.gov, publication 590, if you’re looking for them. Number 1 is that your IRA, you’re not going to borrow money from an IRA account, that’s something to keep in mind. Number 2, you’re not going to sell any property you already own to your IRA. You’re disallowed to your IRA, so you can’t buy, your IRA can’t buy any house that you personally own. Number 3, you’re not going to use your IRA as security for a loan, so you’re never going to personally guarantee a loan to the IRA, your IRA is not security for a loan. And number 4, you’re not going to use your IRA to buy property for personal use, either present or future. Because you’re not allowed to have what’s called personal benefit in your IRA. So when it comes to IRA rules there’s definitely more than that and we’d be happy to tell you more about it at uDirect IRA services and our website is youdirectira.com.
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