I have a Non-traded IRA Real Estate Investment Trust that has not been allowing me to withdraw the RMD nor cash withdrawal from a cash account that is not an IRA. They state they will advise the situation on Dec 31, 2025! It is my understanding that they have not gone out of business nor filed Bankruptcy. IRS wants the RMD paid. Previously I have been adding the amount due from this RMD to another IRA so I meet the legal withdrawals of both IRAs.

A)

This situation with your Non-traded IRA Real Estate Investment Trust (REIT) sounds frustrating. Here are some steps you can take:

Contact the REIT custodian or administrator:

• Non-traded REITs often have a custodian or administrator who holds the assets on behalf of the investors. They might be able to provide more information on the reason for the withdrawal restrictions and the timeline for when they’ll be lifted. Try to get this information in writing.

Review the REIT Investment Documents:

• Carefully review the prospectus and any investor agreements you received when you initially invested in the REIT. These documents should outline the rules regarding withdrawals, including RMDs. Look for any clauses related to suspension of redemptions or restrictions on cash flow.

Contact your IRA custodian:

• If the REIT custodian isn’t helpful, reach out to the custodian of your IRA account. They may be able to offer guidance based on their experience with non-traded REITs and IRA regulations.

Explore Legal Options:

• If the REIT is preventing you from taking your RMD and you’ve exhausted other options, consider consulting with a financial advisor or attorney specializing in securities law or IRA regulations. They can advise you on your legal rights and potential courses of action.

Report to the IRS (potentially):

• While this is a last resort, if you are unable to access your RMD by the deadline and it goes undistributed, you may face penalties from the IRS. The IRS may impose a 50% penalty on the amount not withdrawn. You can explain the situation to the IRS when filing your tax return, but they may still assess the penalty. It might be worthwhile consulting with a tax advisor to understand the implications of not taking your RMD and explore ways to potentially minimize any tax penalties.

Here are some additional points to consider:

• Non-traded REITs are generally considered illiquid investments because they are not easily bought or sold on an exchange. This can make it difficult to access your money when you need it.
• IRAs have specific rules regarding withdrawals. There are penalties for early withdrawal (before age 59 1/2) and for missing required minimum distributions (RMDs) after reaching age 72.

It’s important to take action to address this situation as soon as possible. By following these steps, you can hopefully get access to your RMD and avoid any potential penalties from the IRS.