You can own real estate in a Traditional or a Roth IRA. In both cases, the assets in your IRA grow tax-free over time. The big difference is once a set of requirements are satisfied in a Roth IRA, the earnings are distributed tax-free.
Your self-directed IRA can own:
If you don’t want to own actual real property, you can still diversify your retirement savings with:
The IRS sets rules that govern all IRA investments. Many of the rules governing real estate in an IRA relate to the kind of transactions you may not make and the people you may not do business with. Breaking these rules could result in the asset being distributed immediately, triggering taxes and penalties.
In real estate investments, prohibited transactions also include: