Well, sorta.
I just attended a seminar in Florida sponsored by Equity Trust, Inc. (www.trustetc.com) about utilizing funds that may be tied up in IRA accounts to invest in real estate. What a concept! Especially now, when the volitility of the stock market has made uncertainty a fact of life. There has not been a better time than the present to invest in real estate, especially in the Denver market where values are are on the uptick, and what better way to manage your own retirement destiny than to place your investment into something that will actually appreciate?
The best news, though, is that all of the profit that your real estate investments generate can be completely tax-free if they are done within the confines of a Roth IRA! And as if that weren’t enough, the government has a special one-time deal for anyone, at any income level that may want to convert a tax-deferred account into a ”tax free” Roth IRA.
Normally, the conversion of a tax-deferred account into a Roth IRA required taxes to be paid during the year the conversion was made. But in 2010, the government is deferring the tax due for 50% of the conversion until 2011, with the remainder due in 2012. What’s more is that anyone, at any income level will be eligible, but is has to happen in 2010.
Sure, this is a sneaky way for the government to extract tax dollars from the estimated $4.2 Trillion tied up in qualified plans, but what better way can you think of to take control of your financial destiny than by converting a standard security-based IRA into a Roth and purchasing Denver real estate with it? Once done all of the gains are tax-free.
Of course, you’ll want to speak with your CPA for advice about how this works, but once you do, place a call to your expert REALTOR who can help plan the best approach for your real estate investment,
Posted by: Dave Perlowski
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