Invest with Your Retirement Account
Mara Poling investments are eligible for retirement accounts, including IRAs and Solo 401(k)s. If you have a 401(k) from a previous employer, we can help you take control of those funds and invest them in multifamily real estate.
With the right structure, you may be able to significantly reduce taxes on withdrawals—potentially by 50%, 60%, 70%, or more—and even eliminate required minimum distributions (RMDs). Retirement accounts are designed for long-term investing, making them an ideal fit for multifamily real estate.
Alternative Investments
Real estate is considered an alternative investment. Most traditional brokerage IRAs do not allow alternative investments—and often prioritize stocks, bonds, or high-fee funds.
However, with a Self-Directed IRA or Solo 401(k), you can invest in alternative assets like multifamily real estate.
- Converting an existing IRA or eligible 401(k) into a Self-Directed IRA is typically straightforward—and Mara Poling can guide you through the process.
- If you qualify (self-employed with no full-time employees other than a spouse), a Solo 401(k) may be an option. These plans offer additional flexibility, including favorable tax treatment on leveraged investments.
Roth Conversion
Traditional retirement accounts (funded with pre-tax dollars) are subject to taxes upon withdrawal and require RMDs beginning in your 70s.
Roth accounts, by contrast:
- Provide tax-free withdrawals
- Are not subject to RMDs
- Are funded with after-tax dollars
If you currently have a traditional account, a Roth conversion allows you to convert it into a Roth IRA—unlocking these benefits.
Tax Savings on Conversion
When converting to a Roth, you pay taxes based on the current value of your account. Multifamily real estate investments may help reduce that taxable value through fair market valuation (FMV).
Unlike publicly traded stocks, real estate investments are valued annually by an independent third-party firm, in accordance with IRS guidelines. In many cases, this valuation may be lower than the original investment amount—not due to poor performance, but because of IRS-mandated valuation factors.
This lower FMV can reduce the tax burden at the time of conversion—potentially saving 30% to 50% or more.
Tax-Free Growth
The real advantage of a Roth conversion is not just initial tax savings—it’s long-term, tax-free growth.
Once your account is converted:
- All future growth is tax-free
- Withdrawals—including gains—are tax-free
As your multifamily investment grows, that growth compounds without future tax liability.
A Simple Example
Consider the following:
- You own a traditional IRA with $100,000 in stock
- At a 20% tax rate, withdrawing those funds would result in $20,000 in taxes
Now imagine:
- You transfer the IRA into a Self-Directed IRA
- You invest in a Mara Poling multifamily fund
- The first-year FMV is $50,000
Your tax on conversion would be based on $50,000—not $100,000—resulting in just $10,000 in taxes.
Now assume the investment grows to $200,000:
- In a traditional IRA: ~$40,000 in taxes upon withdrawal
- In a Roth IRA: $0 in taxes
Result: $30,000 in tax savings—a 75% reduction.
Important Disclaimer
Mara Poling is not a tax advisory firm, and this information is not intended as tax advice.
This strategy is shared based on the experience of many Mara Poling investors who have implemented similar approaches. Every situation is unique.
We strongly encourage you to consult with your tax advisor. We are happy to work with you and your advisor to help evaluate whether this strategy is appropriate for your goals.
Learn More
Log into the Mara Poling Portal to explore our multifamily investment offerings. Review current assets, target performance, offering terms, and more.
