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I am interested in acquiring real estate through my Roth IRA. Am I capped as to how much I may utilize toward the down payment?

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  Answers  |  5

May 25, 2016

Hi,

Are you using the cash within the IRAs as a down payment?
Check with your IRA custodian. Is this a self-directed ROTH IRA? The ERISA regulations can be challenging. Also, licensed real estate agents have special situations.

IRA trustees are permitted to impose additional restrictions on investments. For example, because of administrative burdens, many IRA trustees do not permit IRA owners to invest IRA funds in real estate. IRA law does not prohibit investing in real estate, but trustees are not required to offer real estate as an option.

For more information, contact us directly to discuss your situation in greater detail. No obligation.

It's not what you make, it's what you keep that determine your lifestyle.

$commenter.renderDisplayableName() | 01.24.17 @ 15:35

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May 25, 2016

Thank you for your response Dave. Yes, I would be using all of the cash in the IRA as a down payment on an investment property. Yes, my self-directed Roth IRA is with Charles Schwab.

$commenter.renderDisplayableName() | 01.24.17 @ 15:35

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May 25, 2016

With all the cash coming from within the IRA, you should not be capped by contribution limits. All the ERISA & ROTH IRA regulations also apply. Keep me posted on your progress. Happy investing.

$commenter.renderDisplayableName() | 01.24.17 @ 15:35

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May 25, 2016

Appreciate it Dave, thanks. I will keep you posted.

$commenter.renderDisplayableName() | 01.24.17 @ 15:35

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May 25, 2016

Hi Anonymous, You are not capped, but if you are under the age of 59.5 you may take your contributions without penalty. You may also use $10,000 of the earnings without penalty if you are a first-time homebuyer. The account must be at least five years old and the withdrawal must be used within 120 days of withdrawal.

$commenter.renderDisplayableName() | 01.24.17 @ 15:35

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