Real Estate is the most popular reason people roll over their retirement funds into self-directed IRAs and 401(k)s. While many IRA and 401(k) providers advertise their products as “self directed,” they use the term simply to mean that the investor can choose from various publicly traded investments. Typically, these providers are banks and brokerage firms. To purchase real estate or other private assets, investors must place their self directed IRAs or 401(k)s with one of the specialized “custodians” who facilitate such purchases. Below, are illustrations of alternative ways in which real estate may be held in a retirement plan:
