When an investment is sold by my IRA, can I keep the profit that is above my initial investment?
All income generated from self directed IRA investments must be deposited back into the IRA. Of course there is no income tax on this profit until the IRA begins its annual distributions. However, investors may incur unrelated business income tax (UBIT) on a portion of their investment income if the investment was made using borrowed funds.
Latest Webinars
Advanced Insights to Self Directed Retirement Accounts
04/05/2023 | 07:00PM - 08:00PM ET
Need some help understanding the ins-and-outs of self-directing your retirement investments? Then you've come to the right place. In this STC webinar you'll:
- Learn about using leverage in your retirement portfolio through non-recourse loans
- Understand what investments may trigger UBIT or UDFI
- Decide if you should investigate a Roth conversion for your account