Self directed 401K to purchase real estate

[Vinny Incognoli]

My apologies, I just learned about Self directed or solo 401K to purchase real estate. Does anyone have experience with these types of 401K’s? Pros/Cons? I appreciate the input. 

[Randy Rodenhouse]

I have been buying with my SDIRA and Solo 401k for over 10 years and have even taken the time to write a book on it.  

I have bought/sold houses, rented properties, done private lending and have purchased many mortgage notes from my Solo 401k and SDIRA .

The best part is being able to contribute so much to these plans. See below:

Elective deferrals up to 100% of “earned income” in the case of a self-employed individual up to $22,500 in 2023  or $30,000 in 2023 if age 50 or over PLUS Employer contributions up to 25% of compensation as defined by the plan. Total contributions to a participant’s account, not counting catch-up contributions for those age 50 and over, cannot exceed $66,000 for 2023.  There are many nuances so check with a good CPA.

I have received well over 2000 payments in my SDIRA and Solo 401K and I love it!