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Q: Is there any liability to my retirement plan holding real estate? A: You always face liability, whether your plan is an IRA or qualified plan, such as a 401(k) plan. If, for example, your plan owns real estate and a person is injured on that property, the plan or IRA would have the same liability issues that you would have to deal with if you owned the property personally. Your IRA or plan could also avail itself of protections, such as insurance, or having the IRA or plan purchase a 100% interest in a properly crafted limited liability company or similar entity, which then acquires the property. Limiting liability for assets in your IRA or plan should be discussed with competent professionals, such as attorneys. |