Old 401k to Solo 401k or Old 401k to New 401k transfer?

[Anna L.]

Hi, I am newbie (just had my first successful flip). My plan is to start using 401k $ to fund next flips or buy and hold deals. 

Here are the two options I am thinking about: 

1. X-fer from old 401k to Solo and start investing

2. X-fer from old 401k to new 401k and borrow for future project

Here is my dilemma: it would take me few months to understand all the details about investing using Solo 401k. So, I don't feel comfortable to x-fer $ from my old 401k to Solo 401k yet. But, I know that I can only use prior employer 401k funds to do so. Now, I can x-fer $ from my old 401k to my new 401k to maximize the amount I can borrow. But I am afraid that I will no longer have an ability to x-fer to Solo 401k in the future, because all the funds would be with my current employer. 

Which option would you go with?

Thanks!

[Dmitriy Fomichenko]

Anna, you have to inquire with your current employer plan administrator about the rollover, what's allowed.

If you start flipping inside of your Solo 401k plan this will be considered an active business and profits will be subject to UBIT tax, are you aware of such tax? You should discuss this with knowledgeable CPA.