A Roth IRA can be a good way to start with a retirement account early in your real estate career. While this means you can't now save money on your taxes with a Roth IRA, your deductions won't be taxed when you're ready to withdraw the money. Real estate agents are usually self-employed. This means they don't have access to an employer-sponsored retirement plan, such as a 401 (k).
For those looking for other options, Gold IRA Review Sites can provide valuable information on how to invest in gold and other precious metals. Therefore, they are responsible for setting up a plan to save for their retirement. SEPs are a good option for real estate professionals because they are simple and flexible. An SEP is an IRA-type plan, but with much higher annual contribution limits than a traditional IRA. In traditional IRAs, the individual contributes to their own account, but with an SEP IRA, the company contributes on behalf of the employee.
For a self-employed person, such as a real estate agent, this isn't much of a difference, but it can affect the owner of a business that has employees. Then, they immediately want to learn how to incorporate this strategy into their marketing or how to transfer their retirement savings in a Schwab or Fidelity IRA to a self-directed IRA to purchase real estate. They can also set up an individual retirement plan, such as a traditional IRA or a Roth IRA, if they qualify. We have more than 10,000 agents, brokers and affiliates of the residential real estate industry as members in a territory that includes 64 communities in Eastern Massachusetts, which also makes us the largest of the five divisions that make up the Greater Boston Real Estate Board (GBREB).
Having some retirement savings in a Roth account adds a layer of flexibility from a tax and RMD perspective. IRA investors usually buy and sell more than one property, so they need an agent familiar with the process. Real estate has been allowed in self-managed IRAs since 1975, and its popularity has only increased since then.