An example of titling for IRAs, HSAs, and ESAs: the name would appear on the deed as Advanta IRA FBO John Doe IRA #12345.
In the event you have partnered funds for the acquisition, the title would read: Advanta IRA FBO John Doe IRA #12345 as to a (percentage of ownership) % undivided interest.
An example of the titling of qualified plans is: Jane Jones, Trustee of Health Care Profit Sharing 401(k) Plan John Doe Account #12345. The titling for partnered funds would also list the percentage of ownership.
It is important that you seek the advice of proper counsel (such as an attorney or tax professional) when titling property in your real estate IRA. The rules and regulations regarding these transactions may vary from state to state. You want to ensure you are in compliance with any tax obligations or legal requirements.
In order to complete a real estate purchase with your IRA:
- You must provide the contract to Advanta IRA stating that the IRA is the buyer of the real estate. Advanta IRA will need you (our client) to have initialed and signed the contract, indicating the client’s approval of the terms.
- You would also complete a Real Estate Purchase Authorization Form, giving Advanta IRA the details of the purchase and also letting us know what company will be acting as closing agent for the transaction.
- Advanta IRA works with the closing agent to insure all closing documents are properly titled in the name of your IRA. Once the documents are properly drafted, Advanta IRA will send them to you for your review and approval.
- You will sign and date each page of the closing documents, verifying that you have read and approved the paperwork. You then would forward all of the approved documents to us.
- Advanta IRA signs all documents for the purchase on behalf of your self-directed IRA.