You might have asked this before, “Is it possible to invest in tax liens and tax deeds tax free?” Well, the answer is yes. It is entirely possible to use cash from a self-directed IRA to invest tax free in tax lien certificates and tax deeds.

You see, if you use the cash from a regular self-directed IRA to invest in tax deeds and tax liens, your cash will grow tax free until you decide to withdraw from your own account after you retire. However, if you plan to use the cash from Roth self-directed IRA and you did not withdraw until you retire, you will not pay your profits’ taxes! Sounds great, isn’t it?

Though a lot of brokerages may say that they contain self-directed IRAs, these may not be true. A true self-directed retirement account can permit you to invest anything as long as it is not prohibited by the law. Investments that are allowable are tax deeds, tax lien certificates, notes, real estate, and other usual investments. True self-directed IRAs are not allowed to sell investments but they suggest investment types that you can utilize your self-directed IRA account for and may even teach you in doing the paperwork but they cannot make any commission.

Now, retirement account specialists say that you are only allowed to roll-over the money from your 401k if you are not working anymore for the company where you set up your retirement account from. But you can roll over the money from a regular IRA account into a self-directed IRA.

Just a heads up, there will be fees when you open and maintain a self-directed IRA but they are of minimum compared to taxes that you will be paying for the government for your capital gains and investment income.

A lot of people may have come across a site that offers tutorials for investing in tax liens with exaggerated claims such as purchasing million-dollar homes with just a thousand dollars. Of course, some may think that it’s worth a try so they buy this program called “Tax Liens Made Easy” which will provide you access once you pay. Just to warn you, do not get fooled easily with such tax lien and tax deed programs. Always be wary and if you think you are willing to pay for the said program, learn more about it first so you won’t be wasting your time and money for something useless.

It will be helpful if you actually read the full text of the website’s offers so you will know what you will get when you purchase. If the website’s program does not elaborate on what information or what tutorials that will be provided to you, do think twice. It is also recommended to look for other alternative tax lien tutorial programs that are on the internet and choose the best for you.

Just so you know, investing in tax liens may require time and effort for you to study and understand the process before you actually start to bid but don’t be fooled with programs that claims to provide you outrageous steps that will make you rich easily. There are other ways to learn more about investing in tax liens such as reading free blogs or articles on tips and procedures, asking help from real estate professionals, or self-studying.

Investing in tax liens is considered to be one of the best investments that is guaranteed fool-proof and easy if you fully understand the ways just make sure you are able to get the best tips and advices rather than just spending cash on programs that really aim to scam rather than provide information.