Self Directed IRA
I want to withdraw from my self directed IRA in order to invest in a real estate acquisition. It is with Wells Fargo. They say I must first transfer the funds to a qualified intermediary who then will take approximately 2 weeks to fund the transaction. Is this waiting period mandatory? What is the actual rule please?
There is no rule for a 2 week wait that we’re aware of – that’s probably just how long it takes the bank to process the transaction.
If you already have a self-directed IRA and want to use some funds to purchase real estate, you should avoid withdrawing money from your account (especially if you’re younger than 59 1/2) because you will have to pay income taxes on the proceeds (plus a penalty if you’re under 59 1/2). Instead, you should consider finding another self-directed IRA custodian and rolling all or part of your account to that custodian, who can help you purchase real estate within your account.
For more information on some of the best SDIRA providers, be sure to check out our list.
Hope this helps,