Using 401k to invest?

[Tom Jimenez]

Hello to all! My wife and I just began educating ourselves a couple weeks ago about real estate investing and have a great many things to learn, but to get started we have considered using my 401k through my employer to invest with when the time is right. Is this a option, and what are the steps to be taken if it is? Thanks.

[Mark Nolan]

@Tom Jimenez

@Brad Park

This is just a general overview of the process.

A former employer 401k can be transferred to a self-directed IRA or, if you are self-employed, a self-directed solo 401k. Subsequently, the retirement account can be invested directly into real estate. Title to the property will be taken in the name of the IRA or solo 401k. All income and expenses will flow to and form the retirement account. This is just simply another way of investing your retirement funds in something other than the stock market.

Lastly, if you are still employed with the employer where the 401k is held, you generally cannot transfer the funds to another retirement plan such as a solo 401k or an IRA until you are either age 59 1/2, or have stopped working for that employer.