Self-Directed Solo 401(K) Real Estate Investing

[Robert Chaiton]

Hi BiggerPockets,

I have read the book advanced tax strategies and want to take advantage of the Self directed Solo 401(K) I have a few question and was hoping the community could help me out.

Currently I have a W2 job, but I also do business consulting on the side and after reading the book I want to create a sole proprietorship in order to utilize the solo 401(k) retirement option. Once I create the sole proprietorship I want to transfer my current 401(k) from my W2 job into my self directed solo 401(k) plan. Then contribute as much as possible into the plan as an employor contribution from my sole proprietorship and match it with my earnings.

Once I have enough equity/money built up, I want to purchase a buy and hold investment property. The catch here is, I want to create a management agreement with the property which is owned by my self directed solo 401k to earn the cash flow from the property while making the net income 0 or negative. The agreement will be with my consulting company (or a new LLC/ sole proprietorship company). My questions with this are:

1. Is it possible to transfer my current W2 401(k) into a self directed solo 401(k) while contributing to receive contributions from my current employer?

2. Is it possible to create a management agreement with the property owned by my self directed solo 401(k) and my consulting/new LLC/business to earn cash flow from the property through management fees

Does it matter where my CPA is located. I live in Denver but would be open to help from a professional anywhere on this topic.

Thanks for reading!

Bobby