Did you know you can invest in real estate using a Self-Directed IRA?

The Benefits of an SDIRA for Retirement Planning

An SDIRA is a personal retirement account that provides a wider range of investment opportunities than traditional stocks, bonds, and mutual funds.

This unique account offers investors the freedom to select assets that align with their financial goals and investment strategy. Assets such as real estate can be included in an SDIRA, giving investors the ability to diversify their portfolio.

Not only can this diversification potentially provide higher returns, but it can also mitigate your investment risk.

The tax benefits of a traditional IRA still apply to the SDIRA, making it an attractive option for those looking to save for retirement.

A Simple Guide to Establishing an SDIRA

If you're looking to establish a self-directed IRA, the process is relatively straightforward. Follow these steps:

Choose a custodian: There are numerous companies available, such as PGI SelfDirected, Rocket Dollar, NuView Trust, Strata Trust, Quest Trust, Midland Trust, Entrust, Directed IRA, and others.

Open an account: Individuals can select the type of IRA they prefer (Traditional IRA, Roth IRA, etc.) by submitting an application and providing personal information, such as their name, address, and Social Security number. This process takes less than a week.

Fund the account: Individuals can contribute funds annually or transfer funds from another retirement account, such as a 401k.

Invest: Once the account is funded, individuals can inform their custodian about where they would like to invest their funds.

Ways to Fund Your SDIRA Account:

Here are some great options to consider when funding your SDIRA account:

Annual Contributions: Make yearly contributions to your SDIRA up to the annual contribution limit set by the IRS. For 2022, the contribution limit for IRAs is $6,000 for those under age 50 and $7,000 for those over age 50.

*Rollovers: Transfer funds from your 401k or another retirement account into your SDIRA. This is known as a rollover contribution, which allows you to move funds from one account to another without paying taxes or penalties. This is one of the best options to fund your IRA. If you recently changed jobs, it is highly likely that your 401k from your previous employer is fully eligible for rollover! Keep in mind that if you are currently participating in your company's 401k, you may not be able to roll over your 401k funds if you want to continue participating.

Transfers: Move funds from one SDIRA to another SDIRA as long as both accounts are under your name.

Inheritances: Receive funds from an inherited SDIRA account, which can then be transferred into your own SDIRA.

Want to Invest Passively in real estate using retirement funds?

At Gibson Capital, we have assisted several of our investors to setup Self Directed retirement accounts to invest in our real estate syndication opportunities.

If you are interested in learning more about passively investing in real estate, you can sign up to learn about upcoming opportunities here or schedule a call here.