Self directed 401k for my mom who is retiring in Illinois soon...

[John McConnell]

Hopefully get some good response for my question. My mom is retiring soon and has a little money put away in a 401k. I have been trying to figure out the best way to re invest the money as well as the easiest way to liquidate if needed with least amount of tax implications. I am thinking self directed 401k and then investing that money or at least a portion of it into some real estate. She needs to be able to get to it for emergencies. Anyone have any good suggestion of what you might do in this situation? Thank you in advance!

[Brian Eastman]

@John McConnell

If your mother will be self-employed, the Solo 401k might be a good option.  It would give her full control over investing with the plan, so long as all investments are done at arm's length.

If she is not self employed, then an IRA based self directed plan would be the right path.

Either way, she is looking at taxable distributions from the plan if she chooses to personally take a distribution of plan funds.