Retirement Accounts and Trust Deed Investing

One of the most frequently asked questions The Norris Group receives regarding trust deed investing is what type of accounts are available for investing. Several retirement accounts are eligible for trust deed investing including self-directed IRAs (See vendor list), solo 401ks, and some pensions. Some retirement accounts have restrictions so it will be important to check with the custodian or agent managing your funds. 

Funds that are typically eligible for trust deed investing include:

  • IRAs
  • Roth IRAs
  • Self-directed IRAs
  • SEP-IRAs
  • Solo 401ks

This is not a complete list of potential investment vehicles. Check with the custodian or managing agent of your retirement accounts to find out if your account qualifies.  Also, you’ll want to understand the fees associated with funds coming in and out of your retirement account.

“The widespread misconception that permissible IRA investments are limited to stocks, bonds, mutual funds and certificates of deposits is the result of people and companies who are in the business of selling these products. The Internal Revenue Service (IRS) requires that you have an approved custodian for your IRA or other retirement plan. For the vast majority of investors, the custodian is a bank, brokerage firm, or mutual-fund company---the very companies that are in the business of selling investment products. These custodians simply choose to limit your IRA investment choices to the products you sell. These limits are not imposed by the IRS.”

“The IRS rules allow you to invest your retirement funds in real estate, lend your IRA as a mortgage loan, and many other investment alternatives. The key is to have a custodian that is willing to allow you to self-direct your retirement plans, thereby expanding your investment choices and allowing you to freely choose how to direct your portfolio.”

Preface to: How to Invest in Real Estate
with your IRA and Pay Little or No Taxes
By Hubert Bromma 

The Norris Group BBB Business Review

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