All Forum Posts by: Jeffrey Dixon

Your options are using a non-recourse loan or partnering with another person. In that scenario, there would be two owners of the property. Each or you would need to pay a proportional amount of the expenses and would split the profits. 

When using retirement funds, you cannot do any of the work yourself. That has to be contracted out to 3rd parties. 

A Roth IRA cannot be moved to a Solo 401k. You would need to use a Self-Directed Roth IRA.

You can open a Self-Directed IRA and use the IRA funds to buy a house using a Non-recourse loan.

The IRA will buy the property and own it, so the rents and profits must go into the IRA. You can take distributions from the IRA, but that it is only way to end up with the funds. You will pay taxes on the distributions.

You cannot sell a property you own to your retirement account. Selling it to a 3rd party and then to the IRA is still prohibited.

Dana,

Actually, these are the prohibited parties to your Solo 401k. None of them can do any work on the property. Neither can a business they are associated with. 

• you
• your spouse
• your parents and/or your adoptive parents
• your natural grandparents
• your natural children and/or your adopted children
• your stepchildren
• The spouse of your natural children
• your grandchildren
• Any fiduciary
• Any people providing services to your IRA

uDirect IRA Services can help answer your questions about investing outside of the stock market with your retirement dollars. Our clients buy rental properties, make secured real estate loans and invest in syndications and Private Placement Memorandums.

If you do not work there anymore you can move the funds to a Self-Directed IRA and have the IRA buy real estate.

I am with uDirect IRA Services. Our Solo 401 k allows for a loan to be taken. We can also help with alternative investments, like buying rental properties or making secured real estate loans to others.

When the IRA makes the purchase, the custodian is involved with every step. When you use the LLC to make the purchase, the custodian is not involved. It is faster to buy the property and pay the bills using the LLC