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Showing results for tags 'ER doesnt want to sell'.
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This is a one-person profit sharing plan. He hasn't contributed to the plan in quite awhile, and realizes it's time to simplify and terminate the plan. However, he wants to keep the town house. Assuming the property isn't being rented out by a family member and there are no prohibited transaction issues [i'll quiz him more about this to be sure], I think he would need to make sure that there is an up-to-date appraisal, then roll the property over to a self-directed IRA, which, according to what I've read on the internet is the only way an IRA can hold real estate. 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. Then his rollover would consist of all cash and he can follow the normal IRA investment rules. If neither of those options works, what would be the proper way to handle this? Guidance would be appreciated.