Using your Individual Retirement Account (IRA) to Invest in Private Real Estate Funds

Using your Individual Retirement Account (IRA) to invest in private real estate funds can be a smart way to diversify your retirement portfolio and potentially achieve higher returns. While traditional IRAs typically hold stocks, bonds, and mutual funds, a self-directed IRA (SDIRA) gives you the flexibility to invest in alternative assets, including private real estate funds and private real estate companies such as Future RE Capital Management.

Investing in real estate with Future RE Capital Management through an Individual Retirement Account (IRA) can offer significant tax advantages, especially when it comes to capital gains tax. Here’s how it works:

Tax-Deferred or Tax-Free Growth:

If you invest in real estate using a Traditional IRA, your gains are tax-deferred. This means you won’t pay capital gains tax when the property is sold; instead, taxes are deferred until you take withdrawals during retirement, when the income is taxed as ordinary income.

With a Roth IRA, your gains can be completely tax-free. Since contributions to a Roth IRA are made with after-tax dollars, any income, including capital gains, grows tax-free, and qualified withdrawals during retirement are also tax-free.