Realtors Using their Retirement Funds to Take Advantage of Attractive Real Estate Market, According to IRA Financial Group Report

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Real estate agents using a self-directed IRA or Individual 401(k) Plan to make tax-free real estate investments

Real estate Agents Using Retirement Funds to Buy Real Estate Tax-Free

With IRA Financial Group’s self-directed IRA LLC and individual 401(k) plan solutions, buying rental properties is as simple as writing a check and is tax-free

IRA Financial Group, the leading provider of self-directed IRA LLC and individual 401K retirement solutions, has seen an increase in the number of realtors using either a self-directed IRA or solo 401K plan as a vehicle for using their retirement funds to make real estate investments.

The self directed IRA LLC offers one the ability to use his or her retirement funds to make almost any type of investment on their own without requiring the consent of any custodian or person, including real estate. The IRS only describes the type of investments that are prohibited, which are very few. Whereas, the rising popularity of the individual 401K plan is a result of the EGTRRA tax law change that became effective in 2002. The law changed how salary deferral contributions are treated when calculating the maximum deduction limits for contributions to a solo 401K plan. This change created an opportunity for self-employed professionals, such as self-employed realtors to put away additional amounts toward their retirement as well as make non-traditional investments, such as real estate.

The IRS has always permitted a retirement holder to purchase real estate, raw land, or flip homes. “With IRA Financial Group’s self-directed IRA LLC and individual 401(k) plan solutions, buying rental properties is as simple as writing a check and is tax-free, “ stated Adam Bergman, a tax attorney with the IRA Financial Group. “As the manager of your Self-Directed IRA LLC or trustee of the individual 401(k) plan, the retirement account holder will have control over his or her retirement funds so that a real estate purchase can be made by simply writing a check,” stated Mr. Bergman. One major advantage of buying rental properties with a Self-Directed IRA or individual 401(k) plan is that all rental income generated by the property is tax-deferred until a distribution is taken.

Unlike a conventional retirement account, which requires custodian consent and requires high custodian fees, a real estate IRA LLC or self-directed solo 401K plan will allow one to buy real estate, including rental properties by simply writing a check. Since all the retirement funds will be held at a local bank in the name of the Self Directed IRA LLC or solo 401K plan, all one would need to do to engage in a real estate transaction is write a check straight from the retirement account.

“With IRA Financial Group’s self-directed IRA LLC or individual 401K plan solution, no longer would one need to ask the IRA custodian for permission or have the IRA custodian sign the real estate transaction documents, “ stated Maria Ritsi, a paralegal with the IRA Financial Group. “Instead, as manager of the IRA LLC or trustee of the individual 401K plan, the retirement account holder, will be able to buy rental properties simply by writing a check, “ stated Ms. Ritsi.

The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.

IRA Financial Group is the market's leading “checkbook control Self Directed IRA LLC and Individual 401(k) Plan Facilitator. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate without custodian consent.

To learn more about the IRA Financial Group please visit our website at or call 800-472-0646.

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Jaclyn Baily
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