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Updated about 4 years ago on . Most recent reply

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Jaime Morales
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Self Directed 401k spending

Jaime Morales
Posted

I'm starting my venture into real estate investing. I'm about to open a  self directed 401lk. I'm aware of the rules regarding only using this account for all things related to the investment property.  Does this apply to other expenses related to real estate investing such as travel, food expenses as well? For example, I travel out of state to acquire real estate and have expenses such as lodging, car rental, and food. Do I use the funds from my SD 401k via debit/credit card or must I establish a separate account for such expenses?

  • Jaime Morales
  • Most Popular Reply

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    Dmitriy Fomichenko
    #1 New Member Introductions Contributor
    • Solo 401k Expert
    • Anaheim Hills, CA
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    Dmitriy Fomichenko
    #1 New Member Introductions Contributor
    • Solo 401k Expert
    • Anaheim Hills, CA
    Replied

    @Jaime Morales

    If you open a self-directed Solo 401k plan - you can only use those funds to make investments or pay for the expenses directly related to the investment of the 401k (i.e. property taxes, insurance, repairs, etc). All expenses you mentioned (car rental, food, lodging) are personal expenses and you absolutely CAN NOT use 401k funds to pay for. 

    • Dmitriy Fomichenko
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