Self Directed IRA
Hello Ed,
I purchased commercial property through a self directed IRA(50%) and 50% in cash. The intent was to sell the property when it appreciated. If I own the property when my R.M.D. start and have had no gains, how will the R.M.D. be paid ?
Thanks
George
Permalink Submitted by Alan - IRA critic on Fri, 2018-06-15 19:32
If you do not sell before your first RMD you would have to distribute a partial interest in the property to meet your RMD. The property ownership would then drop below 50% for your IRA and increase above 50% for your personal ownership share. Having split ownership like this substantially increases the risk of a prohibited transaction. Your self directed IRA custodian should be able to provide some advice, since they deal with these issues 24/7.