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Updated about 7 years ago,
Solo 401K for real estate purchase
Hi everyone,
I'm leaning towards opening a solo 401k vs a SDIRA, for buying and holding multifamily properties. But I have a question that I would like answered before I can make a final decision.
My question is, I understand all expenses and rental income go into and out of the account. But, after I buy and hold, which is what I intend to do, how long must I have an account thru the company that sets it up for me. I know the solo 401k account at the bank will be open, because of the income and expenses of the properties. But if I use "xxx401k" company to set it up and all necessary paperwork, will I have to pay the yearly maintenace fee for ever? Even after I buy 5 properties, and am just sitting back collecting rental income.
I didn't find anyone mention this. This would be the final determing factor of a solo 401k vs SDIRA. Paying a few hundred dollars a year for 20 or 30 years? And I assUme the yearly maintenance fees would increase at some point.
JC