With historically low prices in Las Vegas coupled with the recent gains of the stock market, individuals may wish to consider moving a portion of their qualified retirement plans from Wall Street to Las Vegas by investing in real estate. Many people are simply unaware how easy it is to transfer funds tax free from an existing retirement account into a Self Directed IRA (www.pensco.com or www.sunwesttrust.com are great resources).
Section 408 of the Internal Revenue Code allows you to use your self-directed IRA to purchase investment real estate such as a residential property like a single family home (SFR). You should talk to your tax advisor first before you do so to find out the benefits and other rules for compliance.
So…How Does it Work?
Investing in real estate with an IRA is not a new concept. These types of investments have been allowed by the IRS for over 30 years. Basically, you can write a check from your self-directed IRA to purchase the investment property. All the rents and income generated from the income property must be paid to the self-directed IRA. You are accumulating tax deferred dollars this way. You don’t have to pay any taxes on the money until you take it out. If you withdraw any funds from your IRA other than for those purposes that are allowed under the IRS rules before age 59 ½, you must pay a 10% penalty on the money you withdraw.
If you’re interested in using a self-directed IRA to purchase investment property give Rice Real Estate a call. We can help. Give Heidi a call at 702-574-1567.
Rice Real Estate & Las Vegas Property Management
Rice Real Estate is a full service residential real estate brokerage offering worry-free rental property management in Las Vegas, Green Valley Ranch, Seven Hills, Silverado Ranch, Southern Highlands, Mountains Edge, Summerlin and Henderson. Through our extensive network of renters and state of the art marketing techniques we strive to exceed your expectations. We are committed to upholding professional ethics and standards.
Our team provides not only professional management, but also common sense and personalized service at competitive rates – the cornerstone of our long success in the business. Broker & lead Property Manager Heidi Rice has been managing rental properties since 2001 and manages all properties as if they were her own. Rice Real Estate is known as one of the best Las Vegas Property Management companies….just read our reviews here!