How To Use A Self-Directed IRA For Real Estate
JB
Jeremiah Boucher Founder, Patriot Holdings • Author of Finding Your Edge
Key Takeaways
- A self-directed IRA or solo 401(k) lets you invest retirement funds directly into real estate — including commercial.
- UBIT (Unrelated Business Income Tax) applies to leveraged real estate in an IRA — understand the tax implications before using debt.
- You cannot do any work on the property yourself or use it personally — the IRS prohibited transaction rules are strict.
- Solo 401(k)s allow higher contribution limits and checkbook control — more flexibility than a self-directed IRA for active investors.