Roth IRAs and Real Estate Investments
By: Richard Reichler
The “Roth IRA” is a form of long-term, tax-free investment that may be well-suited to those who believe that real estate assets are now priced for future appreciation. The tax consequences of Roth IRAs differ from those of regular IRAs. Contributions to a Roth IRA are not tax deductible, but all of the “qualifying distributions” received from the Roth IRA are free of tax. Thus, at the cost of not obtaining a deduction for the money placed into a Roth IRA, appreciation of the assets will escape any tax until distributed.