Comments on: Loaning money to your IRA/401(k) http://www.jeffnabers.com/2008/05/20/loaning-money-to-your-ira401k/ The No-B.S. Guide to Building Real Wealth in Your Self-Directed IRA or Solo 401k Wed, 25 Aug 2010 01:56:20 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Jeff Nabers http://www.jeffnabers.com/2008/05/20/loaning-money-to-your-ira401k/comment-page-1/#comment-475 Jeff Nabers Tue, 03 Feb 2009 05:42:49 +0000 http://nabersgroup.wordpress.com/?p=55#comment-475 Paul, As a valued client, please use the customer support area of www.nabers.com for your questions. I've pasted these questions in a support message board post. In the future, feel free to post to that message board directly for support issues, and keep in mind it will be visible to all of our clients. For private and sensitive issues, just call us at 877-903-2220. Thanks! :-) Jeff Paul,

As a valued client, please use the customer support area of http://www.nabers.com for your questions. I’ve pasted these questions in a support message board post. In the future, feel free to post to that message board directly for support issues, and keep in mind it will be visible to all of our clients. For private and sensitive issues, just call us at 877-903-2220.

Thanks! :-)

Jeff

]]> By: Paul http://www.jeffnabers.com/2008/05/20/loaning-money-to-your-ira401k/comment-page-1/#comment-474 Paul Thu, 29 Jan 2009 18:52:50 +0000 http://nabersgroup.wordpress.com/?p=55#comment-474 Three questions on this: 1) Would property tax and insurance be considered an "ordinary operating expense" for a rental property? 2) Since the loan is to the plan I assume that this loan can't be direct to an IRA held LLC and instead the trustee must be involved? Would it work something like this or can it go to the LLC??? a. The manager of the LLC would send its member (the trustee) a request for funds to pay the ordinary expense, b. The IRA account holder would send funds to the trustee and direct the IRA trustee to execute the loan for the IRA account and pay the received funds to the LLC. Is this about right? And 3) On payback the LLC would distribute some LLC cash back to its member the IRA account for the purpose of paying back the account holder and the IRA trustee would repay the loan to the IRA account holder without interest. Three questions on this:

1) Would property tax and insurance be considered an “ordinary operating expense” for a rental property?

2) Since the loan is to the plan I assume that this loan can’t be direct to an IRA held LLC and instead the trustee must be involved? Would it work something like this or can it go to the LLC???

a. The manager of the LLC would send its member (the trustee) a request for funds to pay the ordinary expense,

b. The IRA account holder would send funds to the trustee and direct the IRA trustee to execute the loan for the IRA account and pay the received funds to the LLC.

Is this about right?

And 3) On payback the LLC would distribute some LLC cash back to its member the IRA account for the purpose of paying back the account holder and the IRA trustee would repay the loan to the IRA account holder without interest.

]]>