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| You are right JD, the self directed route is not for somebody who thinks he’s gonna game the system by getting cute and fancy. That being said, I could certainly foresee a situation whereby at age 59 1/2, if the plan allows, to establish the self directed IRA, then do what is referred to as an “in service distribution” rollover to the SD IRA, while continuing to work for plan sponsor. Then The SD IRA purchase a farm for cash. All transactions must be considered “Arms length”. Farmland doesn’t have many inherent tax deductions associated, so would/ could make sense in the right situation. Not advising for or against, just that it can be a lucrative option. My wife and I will most definitely be establishing an SD IRa, so as to buy and sell some properties or other assets inside the plan without concern for current income tax. There will be some custodial fees associated though. Needs to be enough assets so as the fees represent a minuscule percentage of plan assets.
Edited by Boone & Crockett 1/28/2019 07:58
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401K vs saving for farmland
