FAQ
Can I buy a house in my retirement account?
Yes, you can. These are excellent investments to place in a retirement account. Dependable rental homes provide consistent, current income, which adds steadily to your retirement nest egg. Just as important, steady rental income offers exactly the passive income that allows you to enjoy your retirement in peace, with the confidence of steady income.
But you do have to do some paperwork. You must set up a "self-directed" retirement account. Several companies (Pensco, XXX, YYY) offer this service. Review their websites carefully to set up your account.
Two considerations: First, property you buy through your self-directed retirement account is owned by your retirement account, not by you personally. Therefore, you cannot take any tax losses related to that property on your personal income tax return. Second, you may not be able to deduct any property management expenses against your personal income. As always, check with your tax advisor on these issues BEFORE buying property in your retirement account.