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Updated over 8 years ago,

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1,409
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Daniel Dietz
Pro Member
  • Rental Property Investor
  • Reedsburg, WI
856
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1,409
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Combining SDIRA and Solo 401K in the same property?

Daniel Dietz
Pro Member
  • Rental Property Investor
  • Reedsburg, WI
Posted

Hello All,

I started my real estate investing using a SDIRA which bought into a 3 way LLC. We own 3 units currently.

I am realizing that there are some advantages to the Solo 401K (yes I qualify) such as not having UDFI taxation when borrowing which I intend to do along with much higher contribution limits. So I am thinking I should go that route with future investments. 

I do have some profits built up in the SDIRA already. Can I, as the owner of the SDIRA, combine those profits with what would be the cash in my newly formed Solo401K into the SAME property? It seems I might be 'self dealing', but if I kept all income and expenses in the same initial ratio, is that the same as how I have read you can 'partner' your own cash with a SDIRA?

Mainly I am thinking of how to put the profits in each account to use sooner by combining them. Unfortunately, my SDIRA is a ROTH, which it seems is the only kind that can NOT be rolled over to a Solo 401k account.

Thanks, Dan Dietz

  • Daniel Dietz
  • [email protected]
  • 608-524-4899
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