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Author: aj485 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76095  
Subject: Re: Roth Conversion Date: 2/19/2009 5:38 PM
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By "more flexible" I was referring to being able to do more self directed investment like real estate in a Roth.

The types of investment that you can do aren't any different between a Roth IRA and a traditional IRA. Transactions that are prohibited in a traditional IRA are also prohibited in Roth IRAs. Prohibited transactions can be found beginning on page 45 of IRS Pub 590 http://www.irs.gov/pub/irs-pdf/p590.pdf

Trying to make real estate investments in any type of IRA is tricky, and requires a lot of excess capital, because the real estate cannot be for personal use, any mortgage must be non-recourse (difficult to find on non-personal use properties) and any payments for things like taxes, repairs and other expenses must be paid out of the IRA.

AJ
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