I would like to use money in my IRA account to buy individual properties. How do I go about doing that?
2006-08-30 03:37:05 · 4 answers · asked by preddy03 1 in Business & Finance ➔ Investing
If it is a first time home purchase, you may use up to $10k penalty free.
http://www.irs.gov/taxtopics/tc558.html
2006-08-30 04:37:46 · answer #1 · answered by kcincon 3 · 0⤊ 0⤋
With an "intermediary (escrow company)," who can hold the funds that will be used solely for purchasing real estate. You avoid tax on the IRA withdrawal that way. Call a SENIOR loan officer at a major lending company, and use a recommendation from a FRIEND. Lending is extremely predatory right now. They are like scavengers, since the market has slowed!
2006-08-30 03:42:15 · answer #2 · answered by georgia b 3 · 0⤊ 0⤋
You have two choices, (I take it your pre-retirement age)
You can borrow the money in your IRA from yourself, or you can take an early withdrawal. You will be heavily taxed come April for the early withdrawal. Be very careful and certain that those income producing properties will give you a return higher than what you would have received if you were to not touch your IRA.
2006-08-30 03:43:28 · answer #3 · answered by gjjr2004 3 · 2⤊ 0⤋
Do you have a house already?
2006-08-30 20:15:52 · answer #4 · answered by Anonymous · 0⤊ 0⤋