FINANCING THE PURCHASE
You may finance or leverage any property you purchase for your Plan. The property is the collateral for the loan. As the property is an asset of the Plan, repayment of the underlying debt must come from contributions to or income from the property or other assets in the Plan.
ENSURING THE TAX-DEFERRED STATUS OF THE ACCOUNT
The entire transaction must flow through the tax-free or tax-deferred retirement account. The escrow must be opened by the account, and not in the name of the beneficial owner. Vesting is always in the name of the account. Only Qualified Plan or IRA funds may be used as good faith deposits, down payments, or purchase money.
If title is vested in individual account holder names, it may not be subsequently sold to the tax-deferred or tax-free account.
BUYING OR SELLING FRACTIONAL INTERESTS IN PROPERTY
While fractional interests in real property may be purchased or sold, such interests may not be bought from the beneficial owner of the Plan or IRA or members of their family or business, except siblings.