Using ROTH and Traditional accounts to fund the same property?

[Daniel Dietz]

Hello All,

We have been working on buying a portfolio of properties and are considering owning a couple of them in SDIRA or Solo401K accounts, and have come up with a questions I have not seen (or at least not paid attention :-)) yet.

Assume one person has both Traditional AND ROTH accounts that have not yet been rolled over to Self Directed Accounts yet. Lets say 75K in each, and they want to buy a property that they need 100K down for and are going to do a non-recourse loan through either one of the Big Banks such as NASB or the like or a Private Lender locally.

Is it allowed to use both of those accounts (same owner) to purchase that property? I didn't know if that would be some sort of 'self dealing' since one account 'is helping the other' so to speak. With this scenario, taxes etc.... aside, is there an advantage for the 'combining of account types' (if allowed) in a SDIRA vs SOLO401K?

We would prefer not to roll more of the Traditional over due to the tax hit, but would consider doing so if that is the only way to do it.

Thanks, 

Dan Dietz