Self-directed IRAs can hold qualifying real estate, making them an important account option for real estate professionals to understand.

When a client purchases real estate through a self-directed IRA, the transaction involves additional requirements that differ from a traditional property purchase. For example, the IRA must be properly identified as the purchaser, and property-related income and expenses generally must flow through the IRA.

Understanding these requirements can help real estate professionals coordinate more effectively with account owners, title companies, and IRA administrators while avoiding potential transaction delays.

Real estate professionals should also be aware that IRA-owned property cannot be used for personal benefit by the account owner or other disqualified persons.