Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Goals, Business Plans & Entities
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated 11 months ago on . Most recent reply

User Stats

47
Posts
6
Votes
John D.
  • Fremont, CA
6
Votes |
47
Posts

Can I create a Solo 401K with only rental income?

John D.
  • Fremont, CA
Posted

I rent out the in-law unit in my backyard. I also have a full time W2 job. I want to roll over my former employer's 401K into a solo 401K so I can more flexibility wrt investments. I don't want to put my rental income into a solo 401k if I don't need to. 

How can I setup a Solo 401k if I have only rental income? I read that you can setup solo 401K if you have only Schedule C income and not Schedule E income. 

Most Popular Reply

User Stats

17,848
Posts
6,239
Votes
Dmitriy Fomichenko
#1 New Member Introductions Contributor
  • Solo 401k Expert
  • Anaheim Hills, CA
6,239
Votes |
17,848
Posts
Dmitriy Fomichenko
#1 New Member Introductions Contributor
  • Solo 401k Expert
  • Anaheim Hills, CA
Replied

John, rental income is considered to be passive. You need legitimate self-employment activity or business with "earned" income to be eligible for a Solo 401k plan.

You can't contribute passive income from schedule E, but earned self-employment income from schedule C is eligible, so your understanding is correct. 

  • Dmitriy Fomichenko
  • (949) 228-9393
business profile image
Sense Financial Services LLC
4.9 stars
166 Reviews

Loading replies...