Rental Income from an LLC I own
I own apartments via an LLC in Massachusetts
It is a full fledged business that I manage/operate
Can I make a self directed IRA contribution to my SEP ACCOUNT ??
Joel D’Errico
I own apartments via an LLC in Massachusetts
It is a full fledged business that I manage/operate
Can I make a self directed IRA contribution to my SEP ACCOUNT ??
Joel D’Errico
Permalink Submitted by Alan - IRA critic on Wed, 2019-01-09 17:04
No. First, the SEP account would need to be held by a self directed IRA custodian. Second, the property would already need to be in a self directed IRA since you cannot make an IRA contribution with anything but cash. You can purchase a rental property with self directed IRA funds and then the IRA owns it and you could transfer it to another IRA with a self directed custodian, but you cannot transfer a property you already own into a self directed IRA as a contribution.
Permalink Submitted by Joel DErrico on Wed, 2019-01-09 17:54
My SEP is with Schwabb are you saying the SEP/Retirement Acct has to own the Real Estate that recieves the rental income ? if So no withdrawals can be made till retirement.I don’t want my SEP IRA to own the property. I want to make an annual SEP/IRAcontribution from the RENTS YES NO?
Permalink Submitted by Alan - IRA critic on Wed, 2019-01-09 19:26
No, the retirement account does not need to own the properties, but an IRA CAN own the properties if done right. As for making SEP IRA contribution from the rents, you cannot because the IRS treats rents are passive income and not net earnings from self employment whether you own the properties directly or through an LLC. You also cannot pay yourself a managment salary on a W-2 from the LLC to use the W-2 income for a SEP IRA contribution.