401k/ROTH options for investing in real estate

[Account Closed]

Hi all, 

I have a quick question. I see lots of people mentioning using their 401k  or ROTHs for investing in properties, most of which are solo 401ks. I was hoping someone could break down the options for an individual just starting out at a company. I do have the option for a 401k with a match program and I do plan to max out that option. My understanding is there are penalties for pulling out against a 401k before the age of 65? Is there a way to avoid that penalty when investing in a property? 

Thanks!

[George Blower]

@Dalton Hirst

The solo 401k is for the self-employed with no full-time employees. With respect to taking distributions, they are not taxable if taken from a Roth 401k provided you have had the Roth 401k for at least 5 years and are over age 59 1/2. However, distributions taken from the pretax 401k account are subject to taxes.