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Updated almost 8 years ago,
Using a SDIRA versus 401k
Here's a thought in SDIRA versus loaning to oneself from the 401k.
SDIRA as we know comes with all sorts of fees.
401k can be used to loan money out to the holder of the account.
I always thought that to be a bad idea but anyway....When the money is paid back, it's with interest (I'm told) to the account holder.
So, the 401k has no fees when using it as allowed to withdraw from. The money would be used to either fund a flip, thereby, paying the 401k back after selling. Or, down payment or rehab and again paying back afterward.
Can the 401k be used to avoid the fees that come with SDIRA accounts?
I'm sure there are strong reasons for withdrawal from the 401k.