Self-Directed Accounts

Roth vs. Traditional IRA

Selecting a Custodian or Trustee

Distributions

Borrowing Money

For a Future Retirement in Costa Rica

Investment Examples

An excellent way to minimize your tax obligation in the United States is to use your retirement funds to purchase real estate—either domestically or internationally. With a self-directed retirement plan, you can invest in rental property, rehabs, commercial property, raw land, and other forms of real estate. Once you have identified a truly self-directed custodian or administrator, the process is very simple and is basically like any other real estate transaction. One caveat, however, is that the tax-deferred or tax-free treatment of accounts such as IRAs is not recognized outside of the United States. You will still be obligated to pay the required taxes in the country of your investment. And this can never be said too many times: You should always consult a competent tax advisor who is well versed in international and U.S. tax application about your particular situation. What follows is just a quick look of what’s involved using a selfdirected IRA as an example; however, the basic rules and requirements apply to other types of retirement funds as long as they allow self-direction.