Tax, SDIRAs & Cost Segregation
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated almost 4 years ago,
Solo 401k Eligibility
I have done some searching on solo 401k eligibility, I have a couple main questions. For context, i own several small multifamily units that i self manage without employees and am interested in tapping into the tax incentives of a solo 401k. Looking for some clarity / understand on if/where I'm wrong:
1. Rental real estate is considered a passive activity, therefore I would not qualify for a solo 401k.
2. I am my own property manager for these properties, so if I were to pay myself a market rate salary for this, I could use that salary to open and fund a solo 401k. For example, say I were to pay myself a salary of 15k annually for property management, I could contribute this 15k to a solo 401k and decrease my overall taxable income by 15k? I also have a W2 income and contribute to an employer sponsored plan, but from what I've read I can still qualify for a solo 401k for the part time property management