income property in IRA

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L1: income property in IRAI am 49 yrs old, and want to set up an IRA which buys an income producing property. Setup through a trust company properly….How do I set up early withdrawls on an income producing property? An example:I have 150,000 dollars in this IRA trust account. The trust account buys a house for 150,000 dollars. The house generates 10,000 dollars in rent per year.Are there any rules which make this possible? I thought maybe I could transfer the rent income to another IRA each year…just wondering what I could do….Is there any way to do what I am thinking?Thansks, Dave.2008-10-07 14:13, By: hoopers2, IP: [205.169.195.68]
L2: income property in IRAStart byreading the rules on 72(t) and figuring out whether your plan fits a 72(t) plan. Also remember thatregardless of what type of investment that you use to fund your IRA, it is separate from, and has no bearing on a SEPP plan.2008-10-07 14:17, By: gfw, IP: [98.214.144.242]

L2: income property in IRAHello Hoopers:You can certainly do what you are suggesting; however there are two/three major issues:1. You would need to contract with an independent trustee; such as a local trust company. They will typically charge 1% per year in these cases.2. We a have a “toxic” mix here. Let’s say the SEPP distribution is $10,000 per year. That $10k per year absolutely must be distributed irrespective of the asset composition of the IRA and irrespective ofcash availability. What if the house went unrented for some number of months or the new roof had to put on causingall the cash to vanish — very bad news.3.In side the IRA you lose the typically advantageous situations of the depreciation allowance and captial gains treatment on [email protected] 15:40, By: thebadger, IP: [72.42.108.218]