Real Estate

If my Self-Directed IRA or Self-Directed Solo 401(k) real estate investment does not have enough cash to cover unexpected expenses, what should I do?

We recommend you keep between 10-15% of the home value in cash to cover unexpected expenses. Otherwise, you can rollover more dollars from a separate IRA or 401(k) or sell an asset in your Self-Directed retirement account.

It is recommended you keep between 10-15% of the home value in cash to cover unexpected expenses.

If you run out of cash you might have to...

  • Rollover more dollars from another IRA or 401(k)
  • Sell an asset in your Self-Directed retirement account

You CANNOT start commingling personal assets into your Self-Directed Retirement account to pay for repairs.

 

There is a possible exception if you are going are about to lose an asset, but that is the last resort. You should not rely on this provision as this will be heavily scrutinized under audit.

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