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COLUMBIA REVIEW
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Add Real Estate to Your Retirement Account Spooked by the stock market? Wondering what kind of return you’ll get with bonds? Getting minimal return in your money market fund? Susan Horak
Here’s an option you may not know about: The U.S. Internal Revenue Service allows you to have real estate investments in a self-directed IRA retirement account. The critical factor is that the investment must be in the name “It’s a wonderful way to increase of your IRA – not your own name. your retirement fund,” says RuthAnn McBride (CDPE, CIAS), a real estate Taxes are deferred agent with RE/MAX Estates in Estero, As with any tax-deferred retirement Fla. “You can take any or all of the account, income and capital gains money that you currently have in an accumulate tax-free until you tap into investment fund and buy real estate.” the funds. Once you do so – you can begin withdrawing funds with no You can invest in any type of real penalty at age 591⁄2 – you pay taxes estate – single-family homes or condos, on the gains. Rent or lease payments, multi-unit properties, commercial then, flow directly into the retirement real estate, even vacant land – account. Expenses – maintenance and through your retirement account. repair, costs for finding new tenants and so on – are taken directly from the IRA. Realtor, CRS, GRI, ABR
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