Jaime Raskulinecz, CEO of Next Generation Trust Company, has highlighted the potential of tax liens and tax deeds as investment vehicles within self-directed retirement accounts for diversification and passive income. In her Forbes Finance Council column, Raskulinecz delves into the specifics of these investments, noting their short-term nature and the tax benefits they provide when incorporated into self-directed IRAs or solo 401(k) plans.
Tax liens, a less conventional choice in real estate investment, offer investors a chance to diversify their portfolios beyond traditional assets. Raskulinecz differentiates between tax lien certificates and tax lien deeds, shedding light on their operation within self-directed retirement accounts. She also warns of the necessity to follow IRS regulations closely to prevent engaging in prohibited transactions, including self-dealing.
The attractiveness of tax liens is partly due to their brief investment period and the possibility of earning income that benefits from the tax-advantaged setting of an IRA. This income can subsequently be channeled into other alternative assets allowed under self-directed plans, facilitating further wealth growth. For individuals keen on this investment approach, Raskulinecz's article serves as a detailed guide. More information on self-directed retirement planning is available at https://www.NextGenerationTrust.com.
