SEP IRA and Rollover IRA loans for REI

[Eric Thornton]

Hello,

I am following up to my early post regarding using a 401K loan for REI. In hindsight, I wish I kept some money out to use for other investments, but I was always very diligent about contributing to my 401K. Five years ago I left that large employer and am now an independent consultant. I currently have a rollover IRA and a SEP IRA through T Rowe Price. The SEP is tied to my LLC for my consulting business of which I am the sole owner.

Are there any provisions to take a personal loan from either the rollover IRA or the SEP IRA that I can use for REI. Unfortunately, I've tied up a lot of my money in those funds before deciding to get into commercial REI. I don't really want to do the self directed IRA approach because I want to buy and hold eventually for income, not just inside my retirement account(s).

Thanks,

Eric

[Dmitriy Fomichenko]

Eric,

you can not take a loan from an IRA (any IRA). The solution will be to setup a Solo 401k plan, rollover your existing IRAs into it and then take a loan from the 401k.