Chapter 18

IRAs in Depth


Since individual revenue accounts (IRAs) are commonly used to supplement savings through employer-sponsored plans, it is very important to understand them in detail. Some assets, like stocks, can be owned without any problem, but other assets, like real estate, become a bit trickier. Sometimes investors will resort to publically traded real estate investment trusts (REITs), but other investors are desperate for direct real estate ownership with retirement assets. The self-directed IRA can help meet this need, but it has many serious potential pitfalls that should be fully understood.

The potential usefulness of traditional IRAs, Roth IRAs, and Roth IRA conversions will depend upon taxpayer’s unique financial ...

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