Updated over 7 years ago on .
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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!
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#1 New Member Introductions Contributor
- Solo 401k Expert
- Anaheim Hills, CA
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#1 New Member Introductions Contributor
- Solo 401k Expert
- Anaheim Hills, CA
Nicholas,
First, you need to educate yourself on what self-directed IRA is and how it works. This topic is frequently discussed here on the forum so just doing quick search for a related keywords might be a good way to start, the results will keep you busy reading for hours...
Then you need to set on up and rollover your 401k into it. Then you will be able to make investments in real estate and other alternative assets.