403b to Real Estate

[Tessa Mac]

Hello all!

I have two 403b accounts from previous employers and am interested in using this money for a down payment on a property. 

I’ve seen info about 403b loans (doesn’t seem like this is possible since I’m no longer with these employers? Either way it doesn’t seem like the right move to me) or rollover to self-directed IRA and then using that for that down payment. The only other option I see is cashing out the 403b and paying income tax and 10% early withdrawal fee (I’ m 32).

What is the best way to use this money from 403b accounts from previous employer for real estate?

Thanks in advance for your input!

[Brett Synicky]

Quote from @Tessa Mac:

Hello all!

I have two 403b accounts from previous employers and am interested in using this money for a down payment on a property. 

I’ve seen info about 403b loans (doesn’t seem like this is possible since I’m no longer with these employers? Either way it doesn’t seem like the right move to me) or rollover to self-directed IRA and then using that for that down payment. The only other option I see is cashing out the 403b and paying income tax and 10% early withdrawal fee (I’ m 32).

What is the best way to use this money from 403b accounts from previous employer for real estate?

Thanks in advance for your input!

You can roll the 403b’s into a self directed Ira or solo 401k if you qualify. Either of these options would allow you get a non-recourse loan and buy real estate.  Something to note is that you and your immediate family be able to use these properties personally in any way and you should have a 3rd party property manager. Study disqualified parties and prohibited transactions.