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SDIRA

Self-Directed IRA Basics

Real estate investors have greater need of tax-advantaged, retirement strategies than any other investing population, and a self-directed IRA likely holds the answers.


[Updated: Jun 02, 2021 ] Jan 29, 2020 by Carole VanSickle Ellis

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Type of IRA Eligible parties Contributions (for 2020) Tax advantages
Traditional IRA Individuals with taxable income and younger than 70½ years of age $6,500 annually$7,500 annually if you are 50 or olderoryour taxable compensation for the entire year Contributions are deducted from annual income taxes, and taxes are paid when withdrawals are made during retirement.
Roth IRA Individuals with taxable income whose modified gross income falls within certain parameters $6,500 annually$7,500 annually if you are 50 or olderoryour taxable compensation for the entire year Contributions are taxed before they enter the account, and withdrawals from the account during retirement are considered tax-free in most cases.  

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