Off Shore Investment in Real Estate
Using Self-Directed Retirement Funds
The IRS allows significant flexibility when
it comes to investing the assets of a
retirement account. In some cases,
restrictions employed by custodians prohibit
transactions that are fully authorized by
the IRS for ‘Self-Directed’ retirement funds
Allowable investments include raw land,
condos, office buildings, single-family
homes, multi-family homes, apartment
buildings and improved land. With the
exception of ‘Prohibited Transactions’ [IRC
Sec. 4975(c)], most types of real estate can
be acquired with investment funds. As a
rule of thumb, a ‘Prohibited Transaction’ is
any investment that would directly benefit
you before retirement. In other words, you
can invest in any type of real estate as
long as it is an investment and not for your
own use currently.
This means that you can find investment
property in Costa Rica and purchase all or
part of it with your retirement fund assets,
including beach property that generates
rental income that upon your retirement can
become your primary or secondary residence.
Critical to the integrity of your retirement
plan is a qualified custodian who
understands these issues and allows you to
make these types of investments and a
trustworthy, qualified advisor, such as (our
associate that specializes in Trust, Tile
and self directed IRA programs), who
understands the process and can assist you
in implementing your off shore investments
in a compliant fashion.
Putting together the custodian and the
process necessary to implement the use of
your IRA can be done fairly routinely.
Part of our service on
our Property
Scouting Tour
is to guide you
through the process and with the right
introduce you to the right people so as not
to waste your time and in the end, get it
done.
We are totally committed to client care
Excellence in every aspect.
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