Questions people actually ask

It is still an IRA. The difference is that the custodian may allow a broader range of investments, including certain types of real estate, instead of only stocks, bonds, and mutual funds.

Yes, an IRA may own qualifying investment real estate when the account is held by a custodian that allows it and the transaction follows IRS rules and custodian procedures.

Often, yes. Pre-tax money from a former employer's qualified plan can generally roll to a traditional IRA when the distribution is eligible. A direct rollover is usually cleaner because it avoids withholding. Your plan administrator and custodian confirm what applies to you.

ESOPs are a type of qualified plan, so eligible distributions may be rolled over. The path depends on the plan's own rules and the IRS rollover rules, so it must be reviewed case by case.

Potentially. Roth IRA money can generally transfer within IRA rules, and designated Roth money from an employer plan can generally roll to a Roth IRA. The tax treatment depends on your situation.

Usually not while you still work there, unless the plan allows in-service distributions. Your plan administrator can tell you what your plan permits.

No. Buying property for personal use, now or in the future, with IRA funds is the kind of thing the IRS flags as a prohibited transaction.

Generally no. Certain family members are disqualified persons, and letting them use the property can create serious problems. Have your advisors review anyone involved before proceeding.

Day-to-day self-management raises prohibited-transaction questions. Most investors hire independent third-party management. Ask your custodian and advisors before doing anything yourself.

No. Providing your own labor to an IRA-owned property can be treated as a prohibited transaction. Repairs are hired out to independent third parties and paid from IRA funds.

Rent is generally paid into the IRA structure, not to you personally, following your custodian's procedures.

The IRA does, from IRA funds, through the custodian's process. Paying property expenses from your personal account is one of the classic mistakes.

Sometimes, through properly structured non-recourse financing. You generally cannot personally guarantee the loan, and debt-financed income adds a tax layer that needs professional review.

A loan secured only by the property itself, with no personal guarantee from you. If the loan defaults, the lender's remedy is the property, not your other assets.

Unrelated business income tax and unrelated debt-financed income. Debt-financed property or service-heavy operations may create taxable income inside the IRA, sometimes requiring a Form 990-T filing. It does not make a deal bad, but it must be understood before purchase.

Potentially, as a pure investment. Short-term rentals can look service-heavy for tax purposes and carry local permit rules, so this category needs extra review. You and your family still cannot use it.

Potentially, as an investment. The land questions matter: access, easements, boundaries, wetlands, and usability. Personal use of the land by you or disqualified family members is off the table.

Potentially, as an investment, with the same personal-use restrictions. Lakefront adds screening layers: flood zone, shoreline, docks, riparian rights, well and septic, and insurance.

Not by simply moving in. Buying property with IRA funds for future personal use is a prohibited-transaction example. Any change in how the property is held involves distributions and taxes that your advisors must review first.

Buying from yourself or certain family members is a classic prohibited transaction. This is exactly the kind of deal to run past your custodian and attorney before anything is signed.

Sometimes, when the ownership is structured correctly from the very beginning. Partnering arrangements with disqualified persons are high-risk and need legal review first.

No. Custodians generally administer the account and follow your direction. They do not evaluate the quality of the investment, verify the numbers, or give investment advice. That responsibility stays with you and your advisors.

No. The IRS does not approve or endorse specific investments. Anyone marketing an investment as IRS-approved is misstating how the rules work.

It varies. Opening the account and moving eligible funds often takes a few weeks, and the property search and closing run on normal real estate timelines. Starting the account work early keeps you ready to move when the right property appears.

A qualified self-directed IRA custodian, your CPA, your attorney, and depending on the deal, a lender, title company, inspector, surveyor, and insurance professional. Rennie coordinates the real estate side with that team.

Rennie is the real estate professional in the process. He helps you find and evaluate potential properties, understand the property-level questions, and coordinate with your custodian and advisors through the purchase.

No. Rennie is not a tax advisor, attorney, custodian, or investment advisor. He works alongside the professionals you choose for those roles.

The consequences can be severe, including the account losing its IRA status with significant tax impact. That is why the rule is simple: ask first, act second.

No. Real estate values, rents, expenses, occupancy, and tax treatment are never guaranteed, inside or outside an IRA.

Eligible proceeds generally stay inside the IRA structure and can be reinvested under the same rules, following custodian procedures.

Traditional IRA owners generally must begin required minimum distributions in their seventies. A less-liquid asset like real estate takes advance planning for valuation and cash flow, which is a conversation for your CPA and custodian well before the deadline.

This is a real planning issue. The IRA needs reserves for repairs and expenses, because you cannot simply pay from your personal account. Options exist, but they are limited, which is why reserve planning happens before the purchase.