Hello and thank you for educating us!!!
My questions are around the distribution side of self-directed IRAs, we have three; two traditional and one Roth that are partnered together in a checkbook LLC. Seems as though many podcasters cover great detail about getting into the self directed IRAs/checkbook LLC space and navigating inside them but not much on getting out of them.
Our situation is that we have a partnership (3 self-directed IRAs) owning a single family home. We currently rent it out and it makes enough money to take care of itself and we don’t want to sell it. Into the future it will likely make more money and be able to offer us some retirement income because we plan to remodel and it’s in a great location. Our goals are a bit different in that we would like to ‘use it’ into the future during retirement (will be 59 1/2 in two years) to bring family together and supplement some retirement income as it rents out. How would that work within a self-directed series of IRAs? How would we take ‘income’ from the LLC? What steps should we take to prepare for proper distributions to avoid prohibited transactions or would it make more sense to roll over the two traditional IRAs into Roths and prepare for the tax bill, but then how would we ‘use’ the property? It’s the unwinding that’s got us wound up. Can you please take us through steps for success in this situation or walk through another case study on unwinding IRAs without a simple sale all while taking into consideration other ‘land mines’ like RMDs, Social Security, Medicare, etc.
Thank you.