Employer 401k to Solo 401K

[David M.]

Hello All,

If you roll your employer sponsored 401K into a solo 401K, I'm assuming that any profit/cash flow must remain in the 401K as well, correct?

Meaning, if my primary goal is to replace $dayjob income, then investing in a solo 401K is not the correct path...

I'm thinking a 401K loan is better path, and use that as part of the down payment on my first property. That payment would of course eat into cash flow, and that's what my concern would be. I'd rather not wait another year or so before pulling the trigger on a deal (saving for more down during that year), but I'm looking for some opinions. I've read through lots of the 401K loan posts, but perhaps someone that has used a 401k loan could chime in with any thoughts?

Thanks in advance for any input.

[Dmitriy Fomichenko]

@David M.

If you have 401k with the previous employer - you can roll it over into Solo 401k. If the 401k is with current employer you most likely are not going to be able to roll it over until you reach retirement age or leave that company. 

If you invest out of Solo 401k - all of the investment income and gains must go back into Solo 401k. If you are looking to create cash flow that you can use now (before retirement) then you should use your savings to acquire investment in your personal name, outside of the qualified plan.