Why people want to be relaxed and carefree after their retirement? What possible benefit could come from putting land in an IRA? Fine, think of what an IRA does tax-wise. It defers taxes until your retirement. It means, anytime you generally have taxable earnings during a year, with an IRA you don't pay tax on that income for that year, or any year until your retirement.

So think of when you sell property (that is not your personal residence). Suppose you earn money on the sell of that property, generally you'd have to pay a capital gain tax for that year. Think of the investor who is purchasing and selling several properties in a year. That means a lot of capital gains tax.

You could defer the tax on all that real estate benefit. That is exactly what happens when you use an IRA. You get to place the total profit back into purchasing another property, selling it, and repeating the procedure year after year. It is a way to grow your money, income a potentially fair return. In this way you perform "land banking".

The time when you perform land banking, you effectively become your own bank. But in this case, you have the potential to make a much higher return compared to what you'd get at a regular bank. For those who want to make their retirement safe with the help of land or other real property with companies like Ace Capital Group, the policy of "invest your 401k into real state" known as land banking can become a smart way to go, especially given the tax advantages.