REIT's

[S T]

Have a client that asked if he could invest his 401K/IRA rollover into REITS.

He distributed his 401K to a Rollover IRA. Now would like to invest in REITS

From what I can see it is permissable through his investment source. Please correct me if I am wrong. But his investment broker should be able within his IRA to invest a portion of the IRA $$ into REITS and there is no taxability. But it all must be done within his IRA account.

I think the t/p is thinking that he has to distribute IRA $$ to then invest in REITS.

Now what if the current IRA custodian does not offer REITS? T/p would have to rollover to another institution that did handle REITS and then could be invested. Direct rollover so do not have to meet the 12 month rule.

Thoughts would be appreciated, Veritas and Sea Tax

Sandy

[jainen]

fake Schedule C's

>>invest his 401K/IRA rollover into REITS<<

Sandy, you sure ask some heavyweight questions. I think you should fire most of your clients and replace them with fake Schedule C's like the rest of us.

[JoshinNC]

REIT's can be owned in your IRA

Have a client that asked if he could invest his 401K/IRA rollover into REITS.

He distributed his 401K to a Rollover IRA. Now would like to invest in REITS

From what I can see it is permissable through his investment source. Please correct me if I am wrong. But his investment broker should be able within his IRA to invest a portion of the IRA $$ into REITS and there is no taxability. But it all must be done within his IRA account.

I think the t/p is thinking that he has to distribute IRA $$ to then invest in REITS.

Now what if the current IRA custodian does not offer REITS? T/p would have to rollover to another institution that did handle REITS and then could be invested. Direct rollover so do not have to meet the 12 month rule.

Thoughts would be appreciated, Veritas and Sea Tax

Sandy

If the your client's broker does not have the availability to offer these funds in his/her IRA than they can either have the broker change the custodian to a more "friendly" one or they can go to any of the large brokerages (Vanguard, Fidelity, Schwab) and open an account that will give them access to these vehicles.