allow you to contribute 5,000 dollars a year. I'm new at this, but it seems to me that you can buy a 500,000 dollar house with it and make money within the IRA tax free. Isn't that like a half a million dollar contribution, which is way over the 5,000 dollar a year maximum? Maybe I'm having a really big misunderstanding, it seems that self directed IRA's allow you to invest more per year.
2006-09-12 14:51:56 · 3 answers · asked by Ilooklikemyavatar..exactly 3 in Business & Finance ➔ Investing
booo yahoo answers
2006-09-12 16:23:35 · update #1
You can indirectly contribute up to $50,000 or so per year to your IRA if you own a small business. You do that by combining a traditional IRA ($4K) with a company-sponsored 401k ($15K + match) and Profit Sharing plan ($42K minus 401k amounts), and then moving everything over to a Rollover IRA when you quit the business.
You only need about 6 to 8 years to accumulate $500,000 in this manner, more or less depending on your investment returns.
2006-09-12 17:11:48 · answer #1 · answered by alex 2 · 0⤊ 0⤋
I think that the important key here is that you are investing... that is good. If you don't have money to buy a property... but, rather invest in a company... it's a little different of a transaction. I'd approach it differently. One aspect of owning RE is that there are certain advantages for the investor. An example is depreciation. You can shield an awful lot of income by depreciating property. Whatever the investment decision that you make, research it a little. The above sounds like you would have TIC ownership in the property which would entitle you to some of the RE benefits.
2016-03-26 22:40:28 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I believe what it means is that you can invest in mutual funds that are primarity real estate based. They are sometimes referred to as REITs.
2006-09-12 14:59:13 · answer #3 · answered by Angie 6 · 0⤊ 0⤋