We are buying some property overseas. We are considering using cash in IRA accounts so not to tie up other cash. Construction will be completed in about 6 to 8 months (plus slippage). At some point, after my wife retires, the property will become a second home. At that time we want to "buy" it from ourselves and put the cash back into the IRAs. Is this possible?
My wife and I each have an traditional and Roth IRAs with enough total cash to cover the purchase. We plan to rent it out while we aren't occupying it.
I did some research. You can use IRA money to buy property as long as you don't use it yourself. You can then take it as a distribution. I couldn't find if that applies to Roths, a property overseas (in this case, Ecuador), or whether we can transfer the property out of the IRA without taking it as a distribution.