Why are you investing in real estate? Is it for passive or active income, retirement, or diversified portfolio? If you are aiming to build your retirement fund, then one option you can explore is unleashing the power of your self-directed individual retirement accounts (IRAs) and solo 401 (k).
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In this episode, Sam Rust speaks to Clay Malcolm of Advanta IRA about how you can combine your multifamily syndication investment returns and the tax advantages you get from your IRAs. Clay has been in the self-directed IRA and 401(k) industry since 2011, both as an educator and investor. He combines his 20+ years of education experience and his expertise in self-directed account strategies to educate clients, CPAs, CFPs, and real estate professionals throughout the county on the benefits of self-direction. Listen now and learn how you can grow your retirement fund!
Key Points From This Episode:
- Clay elaborates what self-directed individual retirement accounts (IRAs) and Solo 401K are — tax tools.
- Clay says combining tax advantages of IRA and real estate investment returns can be so powerful.
- What is the role of the custodian with your IRA?
- What is Unrelated Business Income Tax (UBIT)?
- How is your IRA paying UBIT?
- Clay details which circumstances can incur UBIT.
- How is a solo 401(k) not subject to UBIT in real estate?
- What does it take to set up a self-directed IRA or solo 401K?
- Clay discusses how you can roll IRAs from one another.
- Clay says it is important to talk to somebody knowledgeable on tax types.
- What are the best practices from an operator standpoint to help your investors get their Fair Market Valuation (FMV) completed?
- Clay shares what people should be aware of in terms of short-term regulation.
- Clay discusses how both IRAs and solo 401K can invest in cryptocurrency.
“I look at IRAs as a standardized version of 401K.” [0:03:13]
“I would say from my user perspective, it (IRA) is just simple, it is an easier tool, it is something we’re probably more familiar with.” [0:03:48]
“The combination of using this tax benefit with real estate can be so powerful.” [0:04:18]
“One of the things that I think is liberating and freeing, and just feels great about solo 401(k) or self-directed IRA is that I am calling the shots now.” [0:18:53]
Links Mentioned in Today’s Episode:
About Clay Malcolm
Clay has been in the self-directed IRA and 401(k) industry since 2011, both as an educator and investor. He combines his 20+ years of education experience and his expertise in self-directed account strategies to educate clients, CPAs, CFPs, and real estate professionals throughout the county on the benefits of self-direction. Clay holds the designation of Certified IRA Services Professional (CISP) and has served on the American Bankers Association IRA steering committee. He received his Bachelor of Science degree in Communications from Northwestern University.
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