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SELF DIRECTED IRAS AND RETIREMENT PLAN OWNERSHIP OF REAL ESTATE: WHAT EVERY REAL ESTATE PROFESSIONAL SHOULD KNOW By: Mat Sorenson Partner, KKS Lawyers Author of The Self Directed IRA Handbook Phone:
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Self directed IRAs are retirement accounts that allow individuals to have more control over their investment choices, including the option to invest in alternative assets such as real estate, private companies, and precious metals.
Individuals who have self directed IRAs are required to file the necessary forms and report any transactions within the account to the IRS.
To fill out self directed IRAs, individuals must report any contributions, distributions, and investments made within the account on IRS Form 5498 and/or Form 1099-R.
The purpose of self directed IRAs is to give individuals more control and flexibility over their retirement investments, allowing them to diversify beyond traditional stocks and bonds.
Information such as contributions, distributions, investments, and any income earned within the self directed IRA must be reported to the IRS.
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