The wealthy are using one unique retirement account to build their fortunes tax-free. You may have never heard of it, but knowing about it can change the course of your retirement planning, allowing you to invest in much more than stocks, index funds, and bonds in your retirement accounts.
We’re talking about making passive real estate income tax-deferred, flipping houses and sheltering the profits for when you retire, or having a rental property portfolio producing massive passive income, all with the tax benefits of your 401(k), IRA, or Roth IRA.
We’re, of course, talking about the self-directed IRA (SDIRA) and the sizable benefits that come with it.
To help, John Bowens (Certified IRA Services Professional) from Equity Trust is on the show to share the tax advantages most Americans have zero clue about. Scott starts the interview by coming in hot, throwing out his most significant objections to an SDIRA. We were even surprised by just how many benefits this single account has and how you can use it in ways most people would never assume of a retirement account.
We’re talking about how to buy rental properties IN your retirement accounts (and profit from them tax-free/deferred), whether a self-directed IRA or 401(k) makes the most sense for you, the “material participation” rule that you CANNOT afford to break, and how much this account costs to set up. This is a game-changing account for retirees who want to live a rich life, so do not skip out on it!
In This Episode We Cover
Scott’s biggest objections to the self-directed IRA (is he wrong?)
How to get tax-free/deferred passive income from real estate in your retirement accounts
The one tax that you MUST know about before investing in an SDIRA
Can you get a mortgage for a rental property in an SDIRA?
How much an SDIRA costs to set up and keep going (less than you’d think)
And So Much More!
Links from the Show
Mindy on BiggerPockets
Scott on BiggerPockets
Listen to All Your Favorite BiggerPockets Podcasts in One Place
Join BiggerPockets for FREE
Email Mindy: [email protected]
Email Scott: [email protected]
BiggerPockets Money Facebook Group
Follow BiggerPockets Money on Instagram
“Like” BiggerPockets Money on Facebook
BiggerPockets Money YouTube Channel
How to Access Retirement Funds Early
Maximize Your Real Estate Investing with a Self-Directed IRA from Equity Trust
Want More Smart Tax Strategies? Grab “The Book on Tax Strategies for the Savvy Real Estate Investor”
Sign Up for the BiggerPockets Money Newsletter
Find Investor-Friendly Lenders
The Self-Directed IRA: What You Should Know About This Wealth-Building Tool
Connect with John
(00:00) Intro
(08:26) Tax-Free Real Estate Gains
(16:45) One Tax to Watch Out For
(19:59) Self-Directed 401(k)s vs. IRAs
(27:36) Making $34,000 Tax-Free!
(30:42) The "Material Participation" Risk
(35:41) Financing Rentals in an SDIRA
(39:40) SDIRA Fees and Costs
(50:05) Completely Passive Income
(51:56) Active Investing in an SDIRA
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-612
Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]
Learn more about your ad choices. Visit megaphone.fm/adchoices