Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 5 years ago,

User Stats

5
Posts
0
Votes
Pablo Kelleher
  • Rental Property Investor
  • Big Spring, TX
0
Votes |
5
Posts

Use ESOP payout for real estate investing?

Pablo Kelleher
  • Rental Property Investor
  • Big Spring, TX
Posted

The company I currently work for is an ESOP company and was recently purchased by another company. I will be receiving a payout of approximately $460K, 80% of which I will receive this next quarter and the remaining 20% within the next 24 months. My end goal is to eventually be able to quit my day job and invest full-time in real estate. I've been informed that to avoid any tax penalty at the time of payout is to rollover the funds to a retirement account. My question is, is there any way for me to use these funds to invest in real estate while at the same time avoiding any tax penalties? I've been reading about self-directed IRAs but from what I understand, any profits would have to go back to the self-directed IRA to eventually benefit from at retirement time. I'm only 35 so I have a ways to go to be able to enjoy the profits of using a self-directed IRA if I am understanding this tactic correctly. I would appreciate any input and ideas of what I can do with my ESOP while at the same time being able to benefit from any real estate investments within the next few years rather than only at retirement.

P.S. - I am a rookie on real-estate investing since I just started learning about it just this year but I am very eager to learn. 

Loading replies...