Use Your 401(k) to Purchase Real Estate


A Tax-Deferred Retirement Account allows you the ability to use your money being held by your previous employer to purchase and hold income-producing real estate.

 

You can rollover/transfer funds into a Self-Directed IRA with no tax consequences or penalties. Once your account is established and funded, you can search for your property. Putting your money into a Self-Directed IRA is not considered a taxable distribution but an investment.

Many clients have used Self-Directed IRAs to purchase investment property in Costa Rica

Purchasing property with your Self Directed IRA/ 401(k) is becoming more and more popular because individuals want more control over their investments. You can use these funds to purchase foreign real estate and at the same time, modifying your portfolio without risking it in the stock market.

 

Your financial planner may not be sharing this investment strategy with you because they do not understand how it works. Most advisors prefer to have you invest in the traditional stock, bonds, and mutual fund securities, but many investors are moving funds away from Wall Street because it is too risky. NuView IRA will allow you the freedom to control your investment.

 

There are rules that must be followed when purchasing real estate with your self-directed IRA, and you can read the complete information on NuViews website.

 

When purchasing property with your IRA, the IRS is very particular on who can benefit. You cannot personally, or your immediate family cannot use the property for use. The property must be a rental property that will generate income which will then be put back into your IRA. If you lived in your purchased property, this would be considered a prohibited transaction per the Internal Revenue Code. This is not a problem for the majority of my clients because they are looking for a safe investment that can fund their IRA until they retire. You can purchase a lot and build a home if you'd prefer.

 

Are you asking yourself why you would use a self-directed IRA to invest in Real Estate, and what are the benefits?

When using a self-directed IRA, you are no longer associated with the risks associated with the stock market and your retirement into hard assets rather than a piece of stock. Self-Directed is no different than any other type of IRA - visit IRS.gov, and you will see that real estate is a permissible investment choice.

 

If you hold your rental real estate in an IRA, you will not pay taxes as long as it is an investment and the funds have not been distributed to you, the IRA owner. All expenses are paid by your IRA and all rental income that is received from the property will need to go back into your IRA. You will not be taxed on the transferred cash unless it is distributed to the IRA owner.

 

To learn more and to begin the process, please let me know and, I will help you to schedule a one-on-one consultation with NuView IRA and one of their team members.. These specialists will assist you in the rollover of your IRA or 401(k) to become self-directed, its quite easy.

 

 

Everyone knows that the US Government is in debt and people are wondering if they will be dipping into your 401(k) or creating additional taxes upon disbursement to pay back this debt? It just may happen. Now is the time to move this money out of the U.S. and into Costa Rica Real Estate.

 

It is recommended and encouraged that you speak with your attorney or CPA before making a transaction and to introduce to them your point person at NuView. Take a look at your retirement account and see what investing potential is available to you.

 

What are you waiting for?

The choice is all yours to be in complete control of your financial future.

 

 

 

 

Copyright © Lisa Farrell ~ Costa Rica Licensed Realtor

Email: lisa@papagayorealestate.com 

Cell: 506-8398-8129 | Office: 2672-4100 | USA & Canada: 561-372-8370