I have a little retirement money that I can access from my old job now that I am no longer working for them. I could take out a loan of up to half and pay that back with no penalties or taxes. Or I could withdraw the whole amount for 10% penalty and taxes at the end of the year. My question is, if I withdraw it all to use in my business, is there a way to avoid most of the taxes thru a tax shelter because of investing it in my business? I figure I could pay off my CC’s and pay about the same from interest rates/10% penalty payment. ???
Thanks for any advise or info!
You should look into moving it not a self-directed IRA. Definitely talk to an accountant about it but that’s what you want to ask them about.
I want to use most the money now, for my RE business. Is withdrawing it all not a good idea?
The self-directed IRA should let you use it for your business. Talk to an accountant to get the details though. I think you have to keep the funds separate from non-IRA funds. As in, if you buy a house with IRA money you can only use IRA money for that house. You can still use “normal” money to buy other houses in the business though. That’s my understanding but I’m not an accountant so check with one.