IRA Rollover

Archive for December, 2009

Question: Can you “rollover” a current IRA account into real estate to be used as your personal or second residence?

I am considering purchasing a second home, I have considerable money in an IRA and would like to use some of it as a down payment on property.

Answer: IRS rules are very complicated. you really need to talk with professionals that specialize in real estate Ira’s.
The short answer is yes. You can merge all retirement accounts to maximize the cash amount available for purchase. If your IRA now has lots of cash, or stock that can be sold for cash, you can pay cash for the real estate. That, of course, gets you around the UBIT problem because Leveraging or mortgaging to buy a property is a taxable event in an IRA.
This is a short quote from an article on the your property path website in the financial planning for real estate owners section.