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Self Directed IRA
I've read through some posts, but I can't seem to find the answer to my question. I am a real estate investor concentrating on buy and hold properties. I am intrigued by the self directed 401k. I currently max out my individual IRA and contribute 9% to my employer 401k. I now would like to get a 401k going that I can use as an investment tool with real estate.
Looks like I can't use passive rental income as the original contribution for the IRA. With that being said, what are my options to get this thing opened? Use personal cash and then use that to buy a property and continue to churn and reinvest? Pay myself a salary(doesn't seem like I'd be able to pay myself enough)? What else? I'm a long term investment guy and want to make sure that I've got multiple accounts to pull from in retirement.
Appreciate the help!
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@Ethan Bruland
The following IRS website explains the self-employment requirement for qualifying for a solo 401k plan.
https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center