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Updated over 7 years ago on . Most recent reply
How to Leveage my 401K to invest
Hi everyone. I have some money in my 401K from my old job that I would love to use to start my real estate journey.
I wanted to know what is the best way to use this.
What I've been reading different avenues, as in self directed IRA, cashing it out. Moving it to my new job and taking a loan out on it.
With the self directed IRA, it didn't make sense for me since the profit goes back in etc. Don't want to cash out and lose almost half the money. I'm thinking just taking a loan on it
I wanted to know if anyone has any advice or am I on the right track with this. Thank you
Most Popular Reply
#1 New Member Introductions Contributor
- Solo 401k Expert
- Anaheim Hills, CA
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#1 New Member Introductions Contributor
- Solo 401k Expert
- Anaheim Hills, CA
Bj, you can start your real estate investing journey using your old 401k.
Retirement accounts are designed to provide you with the future benefits so if you are looking for present benefits qualified plans are not the source of funds to use. As you know you can still convert your 401k into self-directed IRA and gain the control over how those funds are invested but again it would be for your future benefits.
I agree with you that taking early distribution and losing half of your balance in taxes and penalties would be unwise.
- Dmitriy Fomichenko
- (949) 228-9393
