Links

Making Real Estate loans is widely accepted use for IRA's and Pension Plans that can grow rapidly …TAX DEFERRED!

In order to accomplish using your funds you must have a "Third Party Administrator" or TPA. This TPA is set up and approved to administer your bank financing activities. This means you will probably have to transfer your plan to one of these TPA's, unless of course, your present administer is set up to do that.

If you have a current TPA, you simply send the transfer form to them and they do all the work for you. There should be no cost to you except your plan administrating costs. Some TPA's will even collect monthly payments for you and deposit them into your account.

We have selected EQUITY TRUST as our preferred TPA. They can be reached at
(440) 323-5491 or... If you have any questions regarding your plan, contact your plan administrator. If assistance is needed with transferring, feel free to call Barcelona Financial, Inc. (800) 406-0271

Accountant Ed Slott, founder of the IRAhelp.com Web site, offers several suggestions to those considering using IRA money for Real Estate:

Set up a separate IRA for Real Estate investments. Even if only a small portion of the IRA is used for Real Estate, he noted, the IRS could penalize the entire balance in a prohibited transaction.

Check the investment scenario with custodians and other professionals who have experience in these transactions and can spot red flags.

Use money outside an IRA if it's available because tax benefits such as depreciation and the ability to deduct losses are lost in an IRA environment.

If you must use an IRA, a Roth IRA is preferable. The money in the Roth has already been taxed, and any distributions, including capital gains on the property, are generally tax-free.

If you have any questions regarding your plan or its administration, contact your plan administrator. If assistance is needed on transferring, feel free to call Barcelona Financial, Inc. (800) 406-0271