Investing 401(a)

[Lennie Holland]

My current 401(a) is held by Mass Mutual and they tell me that I can't roll it over to anything else. It's embarrassing that I don't know more about my own retirement account but I'm here now so I have to figure out how to make it happen.

Let's say I do figure out how to roll it into a self-directed 401k/IRA, something.

It would be completely legal to then invest these funds into REI business like J. Scott's Lish Properties, invest in HML, invest in notes or any countless thing I wanted. If I don't touch the transactions and all profit is returned to the 401k/IRA, then there's not problem. Is this correct?

I'm going to assume for moment that this is correct. So let's just say I invest into Lish Properties and they flip/build a house that eventually gets sold to, by shear dumb luck, a distant retaliative of mine. Will I incur the wrath of the IRS or would I be fine because I was not involved in the process or is this just silly?

[Cameron Skinner]

as long as your still employed where your 401k was established you can't roll it to a solo 401k or an ira. You could check and see if you can take a loan out on the plan, as many plans allow this up to some limitations  Be careful though if you lose your job you have to pay back in 60 days or pay 10% penalty plus the income tax on the amount of the loan. 

A strategy many guys use borrow 50 k out of your plan buy a home fix it up get it rented and stabilized do a cash out refi and pay back the 401k loan and do it again.  

Hope this helps, good luck!