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Updated over 7 years ago,
Use real estate profit to fund 401k / retirement account
My brother and I own together a few LLCs which generate 200k to 300k profit after expenses, per year. These are for commercial real estate we own. We have been passing this profit to ourselves as a K-1 distribution. We would like to instead put the money in a 401k. (This would have max contribution 54k with employer match). I believe a property-owning LLC can't open a 401k. How can we go about our goal of contributing to a 401k? Is there a related entity we can form to use for this purpose?
I would appreciate any and all insight on this! Thank you in advance.