Jaime Raskulinecz, CEO of Next Generation Trust Company, has detailed how self-directed investors can leverage tax liens and tax deeds within their retirement accounts in a recent Forbes Finance Council column. This approach offers a pathway to diversify portfolios and create passive income streams, a strategy not widely recognized among investors.
Tax liens, as Raskulinecz explains, represent a unique segment of real estate investment that can be incorporated into self-directed IRAs or solo 401(k) plans. The distinction between tax lien certificates and tax lien deeds is crucial, with each offering different mechanisms for generating returns within the tax-advantaged framework of an SDIRA.
Raskulinecz also warns of the importance of adhering to IRS guidelines to avoid prohibited transactions, such as self-dealing. The relatively short-term nature of tax lien investments, typically held for one to a few years, presents an attractive option for investors looking for quicker returns compared to traditional real estate investments.
For those interested in exploring this investment avenue further, Raskulinecz's insights provide a valuable resource. More information on self-directed retirement plans and the range of alternative assets they can encompass is available at https://www.NextGenerationTrust.com.
