transfer
I have a Roth IRA – self directed – with real estate in the account. Can I transfer funds from the Roth IRA with the real estate to a Roth IRA without real estate (with a stock broker) every month without it being a IRS distribution? The administrator of the self directed Roth IRA says that the monthly amount must be the same each month.
Permalink Submitted by Alan - IRA critic on Mon, 2016-02-15 17:12
Yes, a trustee to trustee transfer is not a distribution and there is no IRS limit on the number of such transfers. An IRA custodian however can limit such transfers as appears to be the case here. Remember that you must pay the RE expenses such as property taxes, insurance, and repairs from the IRA cash and this is normally done only from the self directed IRA holding the RE, not from a different Roth IRA.
Permalink Submitted by Rose Robins on Mon, 2016-02-15 17:17
If the Roth IRA – self directed – is short the cash for these items can I then do a transfer-to-transfer from another Roth IRA into the one with the real estate to pay those items?
Permalink Submitted by Alan - IRA critic on Mon, 2016-02-15 17:51
Yes. Avoid distributions and rollovers because you are only allowed one rollover for all your IRAs in a 12 month period of time.
Permalink Submitted by Rose Robins on Mon, 2016-02-15 18:23
THANKS!!!