Few business owners realize that they have the ability to use retirement assets to pay for improvements to their property.  Most people believe that there are only two options available to them if they want or need to access capital from their 401(k) or IRA. Borrowing from a retirement account, while still employed with the employer who established your 401(k), may solve a short term objective but it will require a return of the principal with interest. Early withdrawals on the other hand, are subject to pre-distribution taxes and penalties. The Employee Retirement Income Security Act (ERISA), which created the IRA in 1974, places surprisingly few restrictions on how retirement money can be invested. Except for life insurance or collectibles — such as artwork or coins — retirement funds can be placed in just about anything. Tens of thousands of investors have switched their retirement savings to self-directed accounts since the stock market correction of 2000 and 2001. By some estimates, 3% of the $3.5 trillion held in IRAs is now in alternative investments — and the number is growing.
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