Using a self directed 401K to buy real estate enables investors to earn tax deferred profits.
Fairfax, VA (PRWEB) January 24, 2012
Richard Geller, CEO and managing director of FinancialSuccessInstitute.org, stated today, "Investors can buy real estate with their 401K account by structuring it correctly. A recent survey conducted by Financial Success Institute revealed 73.1% of people responding don't have a self directed 401K that they could use to buy real estate. Instead, 60.8% have a self directed IRA that can also be used to buy real estate but without important benefits available to those that buy real estate with a self directed 401K."
Geller further explains how to buy real estate with a 401K, "This IRA versus 401K analysis article, put out by the Institute, explains key differences why investors are better off when they buy real estate with a self directed 401K. If people buy real estate as an investment, the self directed 401K allows much higher tax free contributions. The higher contributions enable investors to accumulate more funds to buy real estate faster. In 2012, the maximum self directed 401K contribution is $54,500. The self directed IRA maximum is $6,000. A difference of $48,500 both in tax deferred income and what is available to buy real estate."
Geller continues, "While almost anyone can have a self directed IRA, it's particularly well suited for highly compensated professionals such as doctors and attorneys wanting to both defer taxes and buy real estate. Today, investors can buy real estate at prices not seen since 2002 according to the National Association of Realtors. At these prices, investors may want to maximize the dollars they have to buy real estate. Even if they don't have a self directed 401K to buy real estate today, between now and April 17 (tax day) investors can open a self directed 401K with $208,000 or more to buy real estate. People wanting to buy real estate in a big way can contribute $49,500 for themselves and another $49,500 for their spouse for tax year 2011 up until April 17. They can also add their 2012 contributions to more than double what they have to buy real estate. Additionally, other retirement accounts like previous employer 401Ks and IRAs can be rolled into a self directed 401K at any time, further increasing what investors have to buy real estate. Today's market offers a great opportunity to buy real estate for those that can buy real estate with all cash."
Geller concludes, "FinancialSuccessInstitute.org provides the resources needed by subscribers wanting to buy real estate with their self directed 401K. New and relevant information is added several times each week based on staff research on how to use retirement funds to buy real estate and readers specific questions about using a self directed 401K or other retirement account to buy real estate."
The Institute is devoted to educating readers and subscribes about investing alternatives and safeguarding wealth once acquired. Information about using a self directed 401K to buy real estate is only a small sample of resources available to subscribers. Besides details about how to buy real estate with a retirement account, other information readers can access includes the self directed IRA LLC, real estate IRA, debt settlement, legally minimizing taxes, tax lien investing, and precious metal investing.
Disclaimer: Information here and at FinancialSuccessInstitute.org is not legal or professional advice regarding using a 401K to buy real estate or any other retirement account activity. It's intended only as general information sharing. Seek professional assistance regarding your specific circumstances and applicable laws to assure you fully understand the ways you can use your retirement account to buy real estate or before taking any other retirement account action.