Rumor of New Law prohibiting real estate in Self Drcted IRA!
Does anyone know about the proposed (?) new federal laws pertaining to real estate in self-directed IRA’s? I have heard that apparently, Congress is now going to prohibit acquiring real estate in s.d. ira’s…..and /or will require annual appraisals of any real estate owned by a s.d.ira…..and an annual appraisal of any LLC owning s.d. ira that holds real estate in it….
Any input/info?
I am concerned about this…can someone explain, or point me in the right direction to find out more about it?
Thk you
d
Permalink Submitted by Alan Spross on Thu, 2010-03-25 00:07
I have not heard about any new legislation, but the requirement that an IRA produce a valid year end value has always existed. RMDs at age 70.5 are based on the prior year end value of the account, and the cost of an annual appraisal billed to the IRA is something that should be considered before using these investments in an IRA. Up to now, there may well be spotty or limited enforcement of the appraisal frequency.
For a Roth IRA, there are no RMDs for the owner, but there is for any non spouse beneficiary, so this is a potential issue even for Roth IRAs.