Leaderboard

The only other thing I can think of is to replace the town house with cash equal to the appraised value (assuming he has cash available to do that) and have the deed transferred out of the plan's name to his name. Not an expert on this topic but I THINK you can't do that. That seems like that would be the plan selling an asset in a way that would create a PT.

He can transfer the deed to an IRA custodian who is willing to hold RE. However the IRA will need to have other assets/cash to pay all expenses attributable to the RE including insurance, taxes, repairs. He will also need to have periodic appraisals and after 70 1/2 take RMDs. Of course he cannot live in the home. He could not substitute cash which would be rolled over to the IRA instead of the deed to the house because the IRS requires that only the property received from the plan can be rolled over.He can sell the home after it is rolled over without being taxed on the sale or collect rent from a tenant if he continues to own it.