Archives: FAQs

Can I live in a home which I purchase with my IRA funds?

No.  All investments made by your IRA are to benefit your IRA exclusively and not yourself personally. Living in the home violates IRS rules and would constitute a Prohibited Transaction. 

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I need additional funds to purchase a property. Can I obtain financing?

Yes, you may obtain financing; however please keep in mind the following: The loan should not be issued by a Disqualified Person as that would constitute a prohibited transaction with negative tax consequences.  Additionally, the loan must be non-recourse. This means that the loan is backed by the property and not by the borrower personally. […]

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How do I deposit rental income into my IRA?

Please complete a Deposit Information form notifying Madison Trust of the incoming funds.  In Section B, please select “Deposit from Investment” so that deposit is classified correctly.

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How do I pay real estate expenses (such as taxes, insurance, etc.)?

All expenses associated with your IRA investment must be paid for with IRA funds. You will instruct Madison Trust Company to pay expenses by completing an Expense Payment Request Form. You will attach a bill or invoice to ensure that the payment is delivered to the appropriate address. To protect your account from fraud, Madison […]

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How should my IRA-owned property be titled?

Title is held in the name of “Madison Trust Company Custodian FBO [Your Name]”.

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How do I purchase real estate with my IRA?

Please refer to the following checklist for step-by-step instructions on purchasing real estate with IRA funds: Real Estate in an IRA.

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How do I fund my new IRA with a contribution?

Contribution checks are made payable to “Madison Trust Company Custodian FBO [your name][your Madison account #]” and mailed to Madison Administration Company at One Paragon Drive, Suite 275, Montvale, NJ 07645.

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How do I roll over an old 401(k), 403(b) or other retirement account to Madison Trust Company?

Plan Administrators require that rollovers be initiated by the Plan Participant. You will reach out to your current plan administrator and complete their rollover paperwork. You will specify that the funds are being rolled into an IRA so that the transaction is coded as a Rollover and not as a taxable distribution.  Your Plan Administrator […]

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How can I expedite the transfer process?

Here are some things you can do to speed up the process: Provide a clear copy of the Transfer Authorization form with all required fields completed. Please do not submit a picture of the form as your outgoing custodian may reject it. Select “Wire” instead of “Check”. This will speed up the process significantly as […]

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How do I transfer my existing IRA to Madison Trust Company?

You will complete a Transfer Authorization form and attach a recent account statement from your current IRA Custodian. Madison will forward the Transfer Authorization form to your current IRA Custodian, who will perform a direct trustee-to-trustee transfer, whereby they’ll send a check or wire to your Madison IRA. Direct transfers are generally not reported to […]

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