Question about SDIRA

[Account Closed]

This Monday I'll be negotiating a salaried position with my employer as an analyst/agent. My employer acts as a broker, investor, and consultant on self storage facilities. I anticipate a compensation plan that includes a salary, as well as bonuses on sales of facilities. Bonuses will likely bring in roughly $2,500 a sale, roughly 8-12 times a year. I also expect that I'll be offered a matching contributions 401k plan.

My question is: Can I max out my 401k, use it to buy property, and compensate myself for expenses incurred doing so? For example, if I buy a self storage facility several states away, can I pay for travel expenses out of the 401k? Going further, can I pay myself for the time I spend arranging the transaction? If not, it likely makes the most sense to buy extremely passive investments. If so, then I can afford (in the sense of my time) to spend time arranging more value-added investments.

[Brian Eastman]

@Account Closed

Income from an employer would not likely go into a 401k plan that will be self directed.  If the employer has a plan, it will be of the standard Wall St variety.

If you were self-employed, you could establish a Solo 401k that could be self directed and invest that plan in real estate.  There can be no direct or indirect benefit between the plan and yourself.  You are effectively a fund manager and can make decisions and execute transactions on behalf of the plan.  Occasional, very limited travel expenses where the trip can be 100% attributed to the business of the plan can become expenses of the plan, but it is probably better not to go there.  You absolutely cannot compensate yourself for plan activities.... but that is all probably moot in your described scenario.