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 is a great resource).
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.
Begin searching for investment properties in Las Vegas by looking at the properties below. These are all homes available in the Summerlin area priced between $125k & $160k. Rice Real Estate also offers affordable property management services. Rice Real Estate is known as one of the best property management companies in Las Vegas.
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See more Real estate in the Summerlin West community.
(all data current as of 5/17/2013)
$159,900 : 591 Siciliano St, Las Vegas3 beds, 2 full baths
$129,900 : 8605 Danza Del Sol Dr, Las Vegas3 beds, 2 full baths
Listing information deemed reliable but not guaranteed. Read full disclaimer.