IRA Real Estate Investing
IRA real estate investing has endowed many people with a steady investment medium that provides both income and appreciation. One of the best gears available to real estate investors is a government sponsored retirement plan better known as IRA or Individual Retirement Account. IRA real estate investing has become a wealth building option for the majority of Americans. IRA real estate investing helps to benefit from tax-deferred profits or in some cases tax-free profits.
Generally IRA Real Estate Investing can be divided into types:
- Tax-deferred IRA Real Estate Investing – Tax deferred are the tax deductible IRAs that allow yearly contributions to a tax-deferred account with pretax dollars. This means that the money, which is deposited in the IRA is not taxed, but while withdrawing the money immediately after the retirement, taxes has to be paid.
- Tax-free IRA Real Estate Investing – Tax free retirement accounts are also known as Roth IRA where yearly donations are made with after-tax dollars. The benefit of the Roth IRA or tax-free IRA real estate investing is that the growth of the retirement account is tax-free.
Some time back people used to think that the only options for investing with IRAs are stock market and mutual funds but not real estate. The tremendous advantages offered by the IRA real estate investing have changed innumerable lives. The benefits include:
- The power of compound interest - Reduction of taxable income - Asset protection - Estate planning
The IRA real estate investing with knowledge and expertise can have the greatest advantages for the investors. With the IRA real estate investing investors may invest in properties like:
- Raw land - Single family homes - Apartments - Mobile Homes - Commercial Real Estate - Real Estate Notes
Though every IRA allows for real estate investment, it is best to know the appropriate account type, which will suit one’s need. These account types may be classified into:
- A traditional IRA deducts annual contributions from an investor’s income. - A Roth IRA offers no deductions on contribution but allows withdrawing funds tax-free. - SEP IRA is planned for self-employed individuals and small companies.
About the Author
Brad Wozny is a real estate investing expert. Let Brad show you how to connect with eager real estate investor buyers & sellers of INVESTMENT properties. Access private money & creative lending resources. Claim your FREE Strategic Investment Manifesto and Download your 2 FREE real estate investing mp3 case studies at http://www.instantrealestatesolutions.com .
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