Did you know you could have access to your IRA funds for most any investment with the ease of writing a check. Also these funds could be used for investing in real estate and even a new business. This could save you a massive 10% penalty plus taxes if you were considering withdrawing those IRA monies to start a business or buy real estate.

I have seen this mistake too many times to count. This are those clients that show me at the end of the year a 1099-R for taking out funds from an IRA account. It is so sad when I found out why they took out the funds was only because they wanted to start a business or buy real estate. Had they transferred their money to a self directed IRA they could have written a check from their own IRA monies and owned the new business or real estate in the self directed IRA account.

The benefits do not end there because when these investements generate income the income is not taxed till taken out of the IRA. Which means that the real estate can be sold and all of the proceeds can be used to buy another piece of real estate without paying any tax. This is even better tax treatment than a 1031 exchange ( when real estate is exchanged for another property ) because there are no restrictions of purchasing a new property within 180 days or a 45 day identification period.

There are plenty of companies on the internet that will help you set up one of these accounts and you may be even able to fund it with your 401K money.