IRA Rules

Archive for the ‘IRA Rollover Rules’ Category

Question: Can I use my IRA to pay off a $45,000 second mortgage on an investment condo? Would a 401K loan be better?

I know IRA money can be used for investments other than stocks or bonds, but I want to make sure the money is transferred and used within legal Rules For Iras.

The 401K option is okay but, even though interest would be paid back to my own account, I dislike taking out $50,000 after the market has already tanked (and while I’m still contributing and getting matching funds).

Either way, I would reduce my negative cash flow while I continue to attempt to sell the Las Vegas condo or rent it out.
Perhaps borrowing money from a parent at 3% or less interest (to keep up with inflation) is the best option: the $45,000 second mortgage at 9.124% interest can be paid off and my tax refund in the next month can pay off about $8,000 back to the parent (all without touching my 401K or IRA).

Answer: You can invest IRA funds in real estate utilizing a self-directed IRA. Check out Equity Trust Co. at www.trustetc.com
You can not self deal which means you can not purchase property with IRA funds that you currently own.
Therefore, your only option here is to use the 401k borrowing provisions. I do not suggest doing that just to cover a current mortgage.
I do teach how to utilize this strategy in circumstances that benefit you and not hinder your 401k.
Contact me for more info if you like.

Part 5 of Solo 401k vs. Self Directed IRA – No Custodian Required

Part 2 of Solo 401k vs. Self Directed IRA – Investment Options

Question: Can I transfer my Rollover IRA account to a different broker?

Recently, I had to transfer my 401K account to a Rollover IRA account at my wife’s employer – an investment bank (IB). According to the IB rules my wife or any immediate family member cannot have any trading or IRA accounts with any other IB or brokerage. Unfortunately, the IB charges extremely high commission on stock transactions. So, I am looking for a way to transfer my money out of my wife’s IB and into a brokerage like Ameritrade. Does anyone know if there is a legal way to do that without getting in trouble with the employer?

Answer: Yes, employees of securities firms generally have to have all accounts under their control (yours is assumed to be) at their own firm. Some firms allow outside accounts with duplicate statements going to them, but they don’t have to. The reason for all this is to scrutinize all activity for inappropriate insider trading and the like.

Self Directed IRA VIDEO :: CUSTODIAN :: Rollover 401k To IRA :: Real Estate IRA Services