Househacking with Qualified Retirement Plan

[Devin Otway]

Hi BP'ers,

Does anyone know whether its possible to house hack (purchase rental property + live in it) with money in a qualified retirement plan (QRP?). I understand you have 'checkbook' control over the rental property investment, but I wasn't sure whether living in the rental property made a difference.

Thanks!
Devin

[Brian Eastman]

@Devin Otway

What you describe is not possible.

A self-directed retirement plan (IRA, 401k, "QRP") is a vehicle intended to allow for diversification of your tax-sheltered retirement savings and allows for investments such as real property.

IRS rules strictly prohibit any personal benefit from the funds, so living in a house owned by your Solo 401(k) would be in violation.