Investing inside solo 401k plan vs. self directed IRA

[Sal Souza]

Hello,

I have a question for anyone out there who has any experience or knowledge about solo 401k plans.

I'm thinking about rolling my 401k money at work into a solo 401k. I've read that the solo 401k has many advantages over the self directed IRA for investing in real estate. I understand that the rules are a little different, and that it must be tied to a business (e.g. a real estate business) and involve earned income. My question is can the rental income be taken as a distribution from the plan, with minimal taxation, once reaching age 59 1/2?

Thanks!