The library

20 pages, organized the way the questions actually arrive. Every page opens with a direct answer, then explains it.

The basics

What a self-directed account is, what it can hold, and what it cannot.

Can my IRA own rental property?
Yes. An IRA has been allowed to own real estate since IRAs were created, including single family rentals, small multifamily, and commercial buildings....
What is a self-directed IRA, really?
A self-directed IRA is an ordinary IRA held at a custodian that is willing to hold assets other than stocks, bonds, and funds. The tax rules are ident...

Custodians

Who actually holds the account, what they do, what they charge, and where the big brokerages stop.

Can I buy real estate with my Fidelity IRA?
No. Fidelity does not hold direct real estate in retirement accounts. That is Fidelity's business decision, not a tax rule. To buy a building with IRA...
Can I buy real estate with my Schwab IRA?
No. Charles Schwab does not hold direct real estate in IRAs. Schwab's alternative investment access is built for funds and private market offerings, n...
Custodian or administrator: what is the difference, and why it matters
A custodian is a regulated bank or trust company legally permitted to hold IRA assets. An administrator is a service company that handles paperwork bu...
How to choose a self-directed IRA custodian for real estate
There is no single best one, and any article that names a winner is usually being paid to. The right custodian is the one that has closed hundreds of ...

Mechanics

Rollovers, funding, titling, closing, and the paperwork order that trips people up.

Checkbook control: the IRA-owned LLC, and what it costs you
Your IRA owns a single member LLC, the LLC opens a bank account, and you manage that account directly. It removes the custodian from every transaction...
How long does it take to fund a self-directed IRA?
Plan on two to six weeks from starting the transfer to having spendable money, then another week or two for the purchase itself. Account opening is fa...
How to roll a 401k into a self-directed IRA
Open the self-directed IRA first, then request a direct rollover from your plan administrator so the money moves institution to institution. Never tak...
How to title real estate your IRA buys
The deed names the custodian as custodian for the benefit of your IRA, in a format the custodian gives you, such as ABC Trust Company, Custodian, FBO ...

Rules and tripwires

Prohibited transactions, disqualified persons, and the mistakes that disqualify an account.

Can I do repairs on a rental my IRA owns?
No. Doing the work yourself is furnishing services to your own retirement plan, which is a prohibited transaction. It does not matter that you are not...
Can I live in a property my IRA owns?
No. Not for a night, not on vacation, not while it is vacant, and not if you pay full market rent. Personal use of an IRA-owned property by you or any...
Disqualified persons: who your IRA cannot deal with
You, your spouse, your ancestors, your descendants and their spouses, anyone providing services to your account, and any entity that group owns 50% or...
Prohibited transactions: the rules that can destroy the whole account
A prohibited transaction is almost any dealing between your IRA and a disqualified person, which includes you. The penalty is not a fine. The entire I...

Tax: UBIT and UDFI

When a tax-advantaged account owes tax anyway, and who decides.

Does a solo 401k avoid UDFI on leveraged real estate?
In most real estate cases, yes. Qualified plans get a statutory exception for debt-financed real property that IRAs do not get, so a solo 401k can use...
UBIT explained: when a tax-free account owes tax
UBIT is unrelated business income tax. A retirement account owes it when it earns income from an active trade or business rather than from passive inv...
UDFI: what a mortgage does to your IRA's taxes
UDFI is unrelated debt-financed income. When your IRA buys property with borrowed money, the percentage of the income attributable to that debt become...

The money side

Debt inside an account, non-recourse lending, valuations, and required distributions.

Non-recourse loans: how an IRA borrows money
Your IRA can borrow, but only on a non-recourse basis, meaning the property is the lender's only collateral and you cannot personally guarantee it. A ...
Required minimum distributions when your IRA owns a building
You still owe the distribution on schedule, and the IRS does not care that your asset is illiquid. You satisfy it with cash from another IRA, with ren...

Comparisons

Account types, structures, and the paths side by side.

Solo 401k or self-directed IRA for real estate?
If you have self employment income, the solo 401k usually wins, and not by a little. It avoids UDFI on leveraged real property, allows far larger cont...

The weekly letter

One letter a week on holding real estate inside a retirement account. The mechanics, the tripwires, and what changed. No hype, and you can leave in one click.