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Updated over 6 years ago,
Rollover from ER 401k to SDIRA
Hey BP - I need your help!
Bottom Line Up Front: How can I rollover my 401k into a Self-Directed IRA - and how can I use those funds to invest in my first Multi-Family?
Backstory:
To be honest -today was the first time I've ever heard of a self-directed IRA. I currently am 100% vested in an employer based 401k. I have accumulated roughly 18k over 3 years in this 401k. I recently left the employer and started a new one for a significant raise. I WAS planning on just rolling over my 18k into the new employer 401k...until I listened to the most recent podcast.
I am a new investor and first time home buyer. I am planning on using my VA Loan eligibility to buy a 2-4 unit in my area to begin my adventure of real estate investing. Though I need 0% down - I will likely need some additional cash reserves for closing and other costs.
Additionally, I will be interested in purchasing another property as quickly as possible to continue my growth as a real estate investor. This capital from my 401k could be extremely useful if I could use it without penalties and tax liability. Help!