Hi,

I hold certain funds in my IRA account. I am told that I can invest those funds in the areas I wish to using the Self Directed IRA. Can you tell me whether I can purchase a property valued more than the amount of IRA contributions I have in my account?

Many thanks for your help in advance.

Best Regards,
Dilip.

Normally, you register an LLC and set up a self-directed IRA. You invest in the self directed IRA or transfer money from your Trad IRA to self-directed IRA. You take your own investment decisions.

About purchasing property valued more than the amount in IRA, yes it is just like normal property purchase. You give down payment and get rest of investment financed. However, you can not use the property for personal use or for the use of relatives. If IRS finds out that you are using it for personal use, the whole self directed IRA amount will be considered distributed and if you are not 59 1/2, it will subject to early withdrawal penalty.
Read Your U.S. Tax Return: Traditional IRA and Roth IRA

Hi Mukata,

Many thanks for the clarification.

Regards,
Dilip.