Interesting piece in the Times today about self-directed IRAs, and how some folks are looking to the real estate market for investments.
It turns out there is nothing illegal about using a self-directed account to buy real estate or many other things, for that matter. But this does not mean it is easy. There are dozens of caveats on how to do it, and the specter of running afoul of the Internal Revenue Service looms large. (And to be clear, this is still a niche, with only about 2 percent of the $4.8 trillion in I.R.A.’s in self-directed accounts, according to Equity Trust, one of the big players in the industry.)
One guy they talk with a lot is Roger Voisinet, “a real estate agent and the former men’s hockey coach at the University of Virginia.”