My IRA shares an equal interest with my Wife’s IRA in RAW land through individual SDIRAs. My wife and I now want to build on the land and thus take a distribution while somehow keeping taxes deferred. The land is worth roughly $400.000. One well known, top professional’s strategy suggestion was to rollover our IRAs (Land) into our LLC’s Solo 401(k) administered for both of us. THEN, have the 401(k) take on non-recourse debt. THEN distribute the 401(k) land along with the offsetting (401(k) non-recourse debt to reduce (or cancel out) the taxable consequences depending on the LTV achieved with the non-recourse loan. THEN, after the distribution, refinance the non-recourse debt conventionally with much better terms or just use personal cash to payoff the loan which allows us free and clear ownership in the property.

This strategy seems the most rational since cash (the original non-recourse loan proceeds) remains in the 401(k) for the IRS to eventually tax through RMDs. I.E., the IRS still gets it’s share…albeit much later.

However, I HAVE BEEN THROUGH 3 SDIRA “SPECIALIST” ATTORNEYS, one CPA and one internet consultant averaging $350 per hour. Only one professional endorses this strategy while all the others either don’t know, have given clearly erroneous info or have CLEARLY CONFLICTING or NO solutions whatsoever! I’m getting desperate here. I’ve spent a lot of money on expert opinions who all conflict with one another. This is a BIG DECISION which will ultimately involve well in excess of $1M in post development value. Of course, the IRS can’t answer any questions on this either. I desperately need an answer from someone who knows their stuff.