I checked ROTH IRA but that does not seem to allow for real estate investments. My goal is to put money in a retirement account and then withdraw to buy land and real estate with it.. any suggestions?
Bad idea. If you want to invest in real estate, do it outside of retirement accounts.
Technically, it can be done in an IRA but it is normally a bad idea. This would be called a Self-directed IRA and they are a lot of work and they are quite expensive. Problem 1) You lose the capital gains treatment inside of a retirement account. Problem 2) You lose the tax advantages of depreciation inside of a retirement account. Problem 3) You must hire a manager to do everything. If you have property inside an IRA, you can't do any work on the property yourself. The only thing that you can pretty much do is drive by and look at the property. To my knowledge, this applies to ALL retirement accounts. So, if you want to hold real estate, do it outside of a retirement account. Most people who try and do it inside a retirement account end up regretting that decision. EDIT: A defined contribution account is a 401k so real estate is out for that as well. The best way to do it is invest in real estate outside of a retirement account.
You are speaking of a self directed IRA account. I find this to be a very effective means of investing in real estate. There are tax advantages, that would kick in when you are at retirement age and would use portions of the funds in this account., There is no limit on how much the account is able to purchase and earn as there is on how much you are able to contribute each year to this type of account. You make the decision as to what the account would purchase, you may use this account to purchase mortgage notes make mortgage loans, bridge loans to investors that would need funds to rehab investment properties. I have not experienced too many negative things that would prevent me from continuing using this tool to amass retirement funds that are not currently taxed. You are required to have a third party handle any transactions of the account. Find a good local account manager that understand your goals and would be well versed on real estate investment. There are many IRA managers, however many are not knowledgeable about real estate investment. Most are familiar with stock and bond investments in these type funds. I hope this has been of some benefit to you, good luck. FIGHT ON
