Retirement plans for real estate owners
Hello all. Thank you in advance for your time.
We know some RE investors who (some) own a rental house or two, and others who own up to 10 properties.
Both parties are interested in establishing retirement plans based on the income from the RE. We presume (and hope) some of the income would be treated as earned income (possibly to the extent of what they would have paid a property manager, bookkeeper, etc.).
Do anyone know how that can be done? Do you have any literature or articles?
Examples of plans are IRA’s, Single-k’s, profit sharings, etc.
Thanks!
Albert Israel, CFP
[email protected]
206-346-3327
Permalink Submitted by mk foss on Tue, 2009-12-01 18:13
You need to have some self-employment (SE) income for a retirement plan.
If you’re investing as a partnership, a partner acting as a property manager can take a fee (Form 1099) or guaranteed payment (on Schedule K-1) to generate some SE income.