Questions people actually ask

It is still an IRA. The difference is that the custodian may allow a broader range of investments, including certain types of real estate, instead of only stocks, bonds, and mutual funds.

Some investors choose to include qualifying real estate within a self-directed IRA. Whether a particular account and property can do so is determined by the custodian, subject to applicable rules and reviewed with the buyer's advisors.

Yes. Self-directed IRA real estate is held through a qualified custodian, and the custodian's requirements shape the entire transaction. Rennie can introduce you to custodians commonly used by self-directed IRA investors; the choice, and every account decision, is yours to make with your advisors.

No. Eligibility depends on the type of account, the plan's own rules, and your individual situation. Your plan administrator and IRA custodian determine whether your account is eligible.

That depends on your plan and your situation. Determine with your plan administrator and IRA custodian whether your account is eligible for a rollover or transfer. They confirm what applies to you before anything moves.

ESOPs are a type of qualified plan, and some distributions may be eligible to move. Whether yours is depends on the plan's own rules and your situation, which your plan administrator and IRA custodian review case by case.

Potentially. Whether Roth money can move, and how it is treated, depends on your individual situation. Your custodian and CPA confirm what applies to you.

Usually not while you still work there, unless the plan allows in-service distributions. Your plan administrator can tell you what your plan permits.

No. Personal use of IRA-owned property, now or in the future, is generally treated as a prohibited transaction. IRS rules regarding self-directed IRAs can be complex, so confirm the requirements with your custodian and advisors.

Generally no. Certain family members are disqualified persons, and letting them use the property can create serious problems. Have your advisors review anyone involved before proceeding.

Day-to-day self-management raises prohibited-transaction questions. Most investors hire independent third-party management. Ask your custodian and advisors before doing anything yourself.

Generally no. Providing your own labor to an IRA-owned property can be treated as a prohibited transaction. Most investors hire independent third parties paid from IRA funds. Confirm the correct procedure with your custodian before any work is done.

Rent is generally paid into the IRA structure, not to you personally, following your custodian's procedures.

The IRA does, from IRA funds, through the custodian's process. Paying property expenses from your personal account is one of the classic mistakes.

Sometimes, through properly structured non-recourse financing. You generally cannot personally guarantee the loan, and debt-financed income adds a tax layer that needs professional review.

A loan secured only by the property itself, with no personal guarantee from you. If the loan defaults, the lender's remedy is the property, not your other assets.

Unrelated business income tax and unrelated debt-financed income. Debt-financed property or service-heavy operations may create taxable income inside the IRA, sometimes requiring a Form 990-T filing. It does not make a deal bad, but it must be understood before purchase.

Potentially, as a pure investment. Short-term rentals can look service-heavy for tax purposes and carry local permit rules, so this category needs extra review. You and your family still cannot use it.

Potentially, as an investment. The land questions matter: access, easements, boundaries, wetlands, and usability. Personal use of the land by you or disqualified family members is off the table.

Potentially, as an investment, with the same personal-use restrictions. Lakefront adds screening layers: flood zone, shoreline, docks, riparian rights, well and septic, and insurance.

No. Availability for purchase through a self-directed IRA depends on the buyer's individual circumstances, IRA custodian requirements, financing structure, and applicable law. Your custodian and advisors make that determination for each property.

Not by simply moving in. Buying with IRA funds while intending future personal use raises prohibited-transaction concerns. Any change in how the property is held involves distributions and taxes that your custodian and advisors must review first.

Buying from yourself or certain family members is generally treated as a prohibited transaction, regardless of price. This is exactly the kind of deal to run past your custodian and attorney before anything is signed.

Sometimes, when the ownership is structured correctly from the very beginning. Partnering arrangements with disqualified persons are high-risk and need legal review first.

No. Custodians generally administer the account and follow your direction. They do not evaluate the quality of the investment, verify the numbers, or give investment advice. That responsibility stays with you and your advisors.

Ask whether your account is eligible, what the custodian requires to hold real estate, how offers and earnest money must be titled and paid, how income and expenses flow through the account, and what their timelines look like. The custodian's answers drive the process, so have them before you shop.

No. The IRS does not approve or endorse specific investments. Anyone marketing an investment as IRS-approved is misstating how the rules work.

It varies. Opening the account and moving eligible funds often takes a few weeks, and the property search and closing run on normal real estate timelines. Starting the account work early keeps you ready to move when the right property appears.

A qualified self-directed IRA custodian, your CPA, your attorney, and depending on the deal, a lender, title company, inspector, surveyor, and insurance professional. Rennie coordinates the real estate side with that team.

Yes. Tax treatment depends on your individual situation, and your CPA should be involved before money moves or an offer is written, not after.

It is strongly recommended. Your attorney and IRA custodian should confirm that any transaction complies with applicable rules before anything is signed.

Rennie is the real estate professional in the process. He helps you find and evaluate potential properties, understand the property-level questions, and coordinate with your custodian and advisors through the purchase.

No. Rennie is not a tax advisor, attorney, custodian, or investment advisor. He works alongside the professionals you choose for those roles.

The consequences can be severe, potentially affecting the account's IRA status and tax treatment. IRS rules here are complex and fact-specific, so your custodian, CPA, and attorney assess any situation. The working rule is simple: ask first, act second.

No. Real estate values, rents, expenses, occupancy, and tax treatment are never guaranteed, inside or outside an IRA.

Eligible proceeds generally stay inside the IRA structure and can be reinvested under the same rules, following custodian procedures.

Traditional IRA owners generally must begin required minimum distributions in their seventies. A less-liquid asset like real estate takes advance planning for valuation and cash flow, which is a conversation for your CPA and custodian well before the deadline.

This is a real planning issue. The IRA needs reserves for repairs and expenses, because you cannot simply pay from your personal account. Options exist, but they are limited, which is why reserve planning happens before the purchase.