415(c) Retirement Fund Strategies

[Andrew M.]

To all of the retirement fund contributors and 401(k) experts- has anyone used 415(c) contributions to fund your real estate deals, provide short term 'lending', etc? I'd like to borrow from mine, but there isn't much information regarding this section of the tax code. It has similar rules as a 401(k), but with higher yearly limits. It's quite common in the airline industry. What successes have YOU had?

[Dmitriy Fomichenko]

Andrew, 

conventional retirement accounts can only be invested in traditional investments such as stocks and mutual funds. In order to invest in real estate with your retirement account you need a self-directed IRA or self-directed 401k.