Just made $4000 in my Roth today!!!

Sounds really complicated to me. Congratulations!

when you collect the assignment fee or the profit from the sale, this is tax free?

Tammy thanks, it is not that complicated, but you have to follow procedures, etc.

Rolando, it is tax free as the proceeds from the sale will go back to the self directed IRA. So, in other words, you cannot touch it until retirement, but it will be tax free.

thank you for the heads up. look forward to hearing more about your closings. i am working very hard on trying to get my first deal, and hope to get one sooner than later.

Just keep it focused and you will get deals done.

Do you Buy In IL. State Properties.

Andy Sager
DG's AndyS

Andy,
Even if you can start contributing a little bit of money to your roth every month, you will see how it adds up pretty quick. Other than the tax free growth in the roth account, remember that you can always access what you put into the roth without penalty.

Jeri

Thanks Jeri:
Right now I'm busting hump just to keep up with the bills. There is no little extra bit of cash. Once I get a caught up and my REI bills paid off, the plan is for the Roth and making some money.
Thanks for the advice

Andy
DG's AndyS

Great job you two!

My first deal was done using my self directed IRA.

So what if i have a 401k? can i use that to purchase propertie and do what you did with your ira? or would it have to be a "self directed" one.

I don't have an IRA, but this sounds like a great way to use it and make alot of money ! Keep up the good work ! ~Bob

If you have a 401k that allows in-service distributions or if you have any 401k's at old jobs you can rollover into an IRA, you can use them as a self-directed IRA. Or if you have your own business with no empoyees (simplifies things!), you can start a self-directed solo-401k. Or, if you don't have any retirement funds, use your neighbors retirement accounts!!!!! Or your family's accounts. Or John Jr down the street.....money is money!

Jeri

what if the 401k i have is with my current employer? would i have to leave that job before i can roll it to a ira?

If your 401k is with your current employer, then you MAY have a few options:
1) when you leave your employer, ALWAYS rollover your 401k into your own IRA.
2) If you rolled over old 401k's into your current 401k, sometimes your plan will allow you to rollover that portion into an IRA through an in-service withdrawal.
3) If you are 59 1/2 or older, some 401k's allow you to rollover your assets into an IRA through an in-service withdrawal.

You will have to check with your HR department to see if an in-service distribution is allowed. If so, in which case are you allowed to do so?

I do not encourage you to quit your job just to roll over your 401k. Just keep building and know that it will be there for you when you leave.

One idea in the meantime would be to consider using your 401k loan as a line of credit. *JUST BE CAREFUL!! Before doing Self-Directed IRA's, I would have NEVER told someone to use their 401k loan as a means for anything. But, as long as you are smart about it and do not get a head of yourself, then it is another vehicle to access money...again, not including your neighbor's 401k loans, your parents 401k's loans, your sisters 401k's loans, etc.!! Again, use common sense as the consequences could be a tax nightmare!

I concur ! Money is money ! Thanks for the advice !

Thanks for the advice! Im 23, but ive been putting money into my 401k since i was 18, so i think if possible i can try to put that money to use into something better.. a house. I called my 401k company, and they said i can do a "hardship" withdrawl only if the house im buying will be my primary residence.

That is my biggest FEAR the TAXES and if there is any penalties for using my 401k before beign 59-1/2.

Robert S.

Congrats on getting started on real estate and your 401k so early. I am SOOO happy to hear that! One thing to consider would be to contribute to the 401k up to the maximum match, ie. if your company matches 6%, contribute 6% to your 401k. If you can, max out your Roth IRA as early as possible ($5000/year). If you have more than the 6% + 5000 Roth contribution, then contribute the excess to the 401k. This will give you more control over your investments in your Roth and allows you to get free money from your employer.

I hope this helps! Keep up the great work!

Onward!

Well in everything, you have to think outside the box. Congrats on the big haul.
God Bless.

Sandra

Thanks, that's what i figured. The earlier I start the earlier i am able to reach my dreams.

That's exactly what I'm doing my current employer matches me at 6% that's what I'm putting into my 401k. As for a roth ira, I have not started one yet. But I'm going to find out how as soon as possible.

Thanks again. Tom and jeri.

Robert.

Great job glad to hear about you using your IRA. We hope to make it to the Edge this year and maybe you can share with us on how to set up that type of IRA.

Steve.