Can retirement funds be used to invest in commercial real estate?

Some investors purchase commercial real estate through self-directed retirement accounts, such as certain self-directed IRAs or, in some circumstances, qualified retirement plans that permit alternative investments. These strategies involve detailed IRS rules regarding prohibited transactions, ownership structures, financing, and personal use.

Because these rules are complex, investors should work closely with qualified legal, tax, and retirement professionals before pursuing this strategy.

For the right investor, retirement assets may become one component of a broader long-term investment plan.