Using IRAs and 401Ks to Invest In Real Estate

Learn how to use your IRA or 401K to invest in private funds


IRAs and 401Ks are excellent sources of capital for investing in private placements like our real estate investment funds and our asset-backed lending funds. To invest in a private placement using an IRA or a 401K, you have to use a self-directed custodian. A self-directed custodian is like a Schwab or an Ameritrade. They simply act as a custodian for your IRA dollars. To move your money into a self-directed custodian, you have to move your money from a traditional retirement account, or from your traditional 401K, to a self-directed approved custodian. There are hundreds of these types of custodians located throughout the United States.


Using Your IRA or 401K to Invest in Real Estate
Using Your IRA or 401K to Invest in Real Estate

The process to move your money is what we call a tax-free rollover. When you move your money out of a traditional IRA, for example, into a self-directed IRA, that process is a tax-free rollover. There are no tax consequences to that process. Your capital moves from one custodian to another custodian.


This is essentially a tax-free rollover into a self-directed account. Once your capital is in a self-directed account, you have a lot of flexibility in terms of how you invest those dollars. You certainly can invest those dollars in the real estate funds that we sponsor here at KeyCity Capital and the asset-backed lending fund that we sponsor. However, you can also invest in other alternative assets, such as precious metals or cryptocurrency.



The self-directed retirement account gives you a lot of flexibility in terms of investment choice, where you can access off-market investment opportunities that aren't available in a traditional retirement account. When earnings are generated in a self-directed account, those earnings go back to the custodian and can be further deployed into other self-directed investments.


To move your money into a self-directed custodian, you have to move your money from a traditional retirement account, or from your traditional 401K, to a self-directed approved custodian.
 

Take the time, schedule a consultation, and allow us to do what we have been doing successfully for decades. Call 817.912.1569 to schedule an appointment with us or attend a local event and start building your own customized strategy. Use the link below to schedule an appointment today.




82 views0 comments

Recent Posts

See All