Hugh Bromma is CEO of Entrust Administration, Inc. He has years of experience in investment education. His business philosophy is providing quality education to enable his clients to improve their investments. Mr. Bromma has written several books on tax-free and tax-deferred investing and has an extensive background in economics and investing. He teaches investors how to use IRAs in real estate.  Mr. Bromma has a distinguished career in banking, M & A’s and real estate. He founded Associated Administrators, Ltd in 1969, which provides special expertise in IRA and Keogh administration.  He then became CEO of Providence Trust Company in 1981 and is reputed for developing the first Truly Self Directed ™ IRA for a number of banks.  He consolidated a banking and pension management practice in 1993, which he has owned since 1981 into Entrust and now has a national network of local offices providing expert account administration and education services for self-directed retirement plans.

In his various articles Hugh discusses how you can use your 401 K to purchase assets into a plan, which is not prohibited. Real estate is an example of a plan that is not prohibited. You may not deal with yourself or members of your family (other than siblings).  You can purchase mortgages with your plan assets, in other words, you can purchase real property in your plan for income purposes.  In almost all investment cases the unrelated business income taxes does not apply. You may do this more than once.  Some investors purchase distressed properties, repair them and sell them.  Other investors buy discounted notes and still others purchase income streams.  There are multiple options as long as you follow the rules.

Hugh Bromma is well known for his expertise in diversification of assets in tax-free and tax-free deferred environments.  He has written numerous articles and several books including, “How to Invest in Real Estate and Pay Little or No Taxes” and “Do Your Qualified Retirement Plan: A Guide for Self-Directed Plans for Business Owners, Spouses and Partners.”  Mr. Bromma has also been a frequent guest on CNBC, Bloomberg, MarketWatch and other financial programs.  He is a member of the board of directors of several businesses and philanthropic organizations.