Real Estate can increase IRA funds

An increasing number of consumers with IRA accounts (Individual Retirement Accounts) are using their IRA funds to increase the size of their fund through strategic real estate investments. They do this with the use of a Self-Directed IRA, where the account owner makes an investment decision on behalf of the retirement plan.

The Internal Revenue Service requires the owner to have either a qualified trustee or custodian hold the IRA asset on behalf of the IRA owner. Generally, the trustee will maintain the assets and all transaction and other records pertaining to them.

Most self-directed IRA custodians will permit their clients to engage in a wide variety of investments including real estate.

Such investments can substantially increase the owner's IRA account and help to secure the owner's financial situation during retirement years. It's a little-known but highly effective way to invest in real estate using IRA funds.

Send inquiries to Jim Woodard, Copley News Service, P.O. Box 120190, San Diego, CA 92112-0190. Questions may be used in future columns; personal responses should not be expected.