Buying Turnkey Rentals with Solo 401 (k)

[Kristopher Kyzar]

I'm on the cusp of retiring from military service, and I'm contemplating moving my Thrift Savings Plan (TSP) to a Solo 401 (k) after retirement. The goal will be to use the Solo 401 (k) to buy Turnkey Rental Properties to be held indefinitely by the plan. I understand that all money for the deal must come from the plan, and that all money from the deal must go back into the plan. My question is has anyone done this before, and are there any pointers to make sure I can maximize my gains by doing this?

[Brian Eastman]

@Kristopher Kyzar

What you are proposing is a good strategy for getting that tax-sheltered retirement savings into a sable asset that can produce consistent income.

In order to sponsor a Solo 401(k), you need to be self-employed and have no full time employees. Will you be doing something personally that qualifies as a business that can sponsor the Solo 401(k)? If not, then a self-directed IRA would allow you to accomplish the same investment goal.

Working effectively in the turnkey space takes some research.  There is lots of good content here on selecting a good turnkey vendor and staying on top of things to ensure your investments perform as desired.