IRA

Depends on situation

You can use a distribution for whatever you want, but once distributed it will not fall under the tax exempt status of the account that it came from. A great too for growing your IRA with real estate is the Self Directed IRA. Rolling your money into a Self Directed IRA avoids penalties and allows you to invest in many things including real estate, businesses, and other alternative investments. The Self Directed IRA is a unique option for those who are tired of loosing retirement money in the market with the limited options their plan offers. You can invest in just about anything, except for life insurance contracts and collectibles, as long as it is not what is called a "prohibited transaction" meaning that the investment cannot be for your personal use, but must be a true investment, and cannot be with certain people or "relatives". So with that being said you would not be able to invest in a principle residence, but are given countless other alternative investment options with this type of retirement account. My company specializes in providing this alternative investment option for, so contact me if you are interested in finding out more about it.