Retirement Planning for Real Estate Investors

[Nathan Vaughan]

Looking for retirement planning options. Employer 401k is not an option. My income is W2 income and the passive income from investing via rentals owned in a one member LLC with no employees. Roth IRA is not an option. Looked at a solo 401k but looks like the requirement for some self employment income knocks me out of the running for a solo 401k. My only option is traditional IRA's and I really want to create a pot of tax free income at retirement to offset the taxable income from my rental income.

Looking for creative and legal solutions.

[Ashish Acharya]

There are no plans that let you put in tax deductible qualified retirement  plan contribution if you don’t have a earned SE income. 

If you are not active participants in your employer 401k, both you and your spouse can contribute 12000 to Deductible IRA if tax is your main concern right now. There is no AGI limit.

Also,if retirement plan is concerns of yours, why not employer 401k. It is tax deferred and you must be getting free match up to 3%. 

There will not be many options until you have your own active businesses, such as flipping. 

Also, you need to consider HSA. It is tax deductible plus tax deferred and can also be used as retirement accounts after age 65 without any penalty of 20%

Same with 529 plans, series EE/I bonds, they grow tax deferred although not deductible, you can use them as retirement if your child gets scholarship. No penalty there. 

There are many other planning done to meet your needs. You need to sit down with CPA/CFP to analyze your needs.