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Ask The Expert: Investments

Q: Is it possible to purchase real estate as part of a Roth IRA?
See other answers from this expert. 245 out of 444 people found this useful.
A:

Yes, it is possible. You will need to use a self-directed IRA administrator who specializes in this strategy. There are several companies offering this service. Things to be careful of include high fees, difficulty in administration, and overlapping tax advantages. In other words, it can be expensive and cumbersome to work with. In addition, rental real estate is already a tax advantaged investment because of the depreciation deduction and losses being deductible against ordinary income (within limits and depending on investment status). Wrapping all of that inside the tax advantages of an IRA may be beneficial or it may not depending on your personal situation.

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Important Roth Information

Each year, the IRS updates the rules for Roth IRA. Here are all the details for 2013 & 2014: