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Updated almost 6 years ago on . Most recent reply

User Stats

6
Posts
8
Votes
Kurtis Green
  • Investor
  • Towson, MD
8
Votes |
6
Posts

Can I use Roth 401k to buy out remaining note on rental property

Kurtis Green
  • Investor
  • Towson, MD
Posted

I own a rental property with a mortgage, and I have an individual Roth 401k... In a few years my Roth will be worth more than my note on the rental. When that time comes, am I able to use my retirement account to purchase my house from myself at less than market value (being the note amount), allowing the retirement account to own the property in full and collect rent into that account; In addition, still allowing me to maximizing contributions each year? What happens with the "gifted" equity from a tax standpoint and what happens if I decided to sell? My gut tells me it cant be done this way, but I was hoping for some insight from others, more knowledgeable than I.

I appreciate the thoughts!

Most Popular Reply

User Stats

6
Posts
8
Votes
Kurtis Green
  • Investor
  • Towson, MD
8
Votes |
6
Posts
Kurtis Green
  • Investor
  • Towson, MD
Replied

@George Blower - Thank you for the quick response. I appreciate you taking the time and I enjoyed reading more info on your website, very informative. 

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