If I sell current house and just roll over the money to pay off construction loan, then plan is to use basement rent money to pay off other properties.

Following are the similarities and differences between the solo 401k and the self-directed IRA.The Self-Directed IRA and Solo 401k Similarities Both were created by congress for individuals to save for retirement;Both may be invested in alternative investments such as real estate, precious metals tax liens, promissory notes, private company shares, and stocks and mutual funds, to name a few;Both allow for Roth contributions;Both are subject to prohibited transaction rules;Both are subject to federal taxes at time of distribution;Both allow for checkbook control for placing alternative investments;Both may be invested in annuities;Both are protected from creditors;Both allow for nondeductible contributions; andBoth are prohibited from investing in assets listed under I.R.C. 408(m).The Self-Directed IRA and Solo 401k DifferencesIn order to open a solo 401k, self-employment, whether on a part-time or full-time basis, is required;To open a self-directed IRA, self-employment income is not required;In order to gain IRA checkbook control over the self-directed IRA funds, a limited liability company (IRA LLC)  must be utilized;The solo 401k allows for checkbook control from the onset;The solo 401k allows for personal loan known as a solo 401k loan;It is prohibited to borrow from your IRA;The Solo 401k may be invested in life insurance;The self-directed IRA may not be invested in life insurance;The solo 401k allow for high contribution amounts (for 2016, the solo 401k contribution limit is $53,000, whereas the self-directed IRA contribution limit is $5,500);The solo 401k business owner can serve as trustee of the solo 401k;The self-directed IRA participant/owner may not serve as trustee or custodian of her IRA; instead, a trust company or bank institution is required;When distributions commence from the solo 401k a mandatory 20% of federal taxes must be withheld from each distribution and submitted electronically to the IRS by the 15th of the month following the date of each distribution;Rollovers and/or transfers from IRAs or qualified plans (e.g., former employer 401k) to a solo 401k are not reported on Form 5498, but rather on Form 5500-EZ, but only if the air market value of the solo 401k exceeds $250K as of the end of the plan year (generally 12/31);When funds are rolled over or transferred from an IRA or 401k to a self-directed IRA, the amount deposited into the self-directed IRA is reported on Form 5498 by the receiving self-directed IRA custodian by May of the year following the rollover/transfer.Rollovers (provided the 60 day rollover window is satisfied) from an IRA to a Solo 401k or self-directed IRA are reported on lines 15a and 15b of Form 1040;Pre-tax IRA contributions on reported on line 32 of Form 1040;Pre-tax solo 401k contributions are reported on line 28 of Form 1040;Roth solo 401k funds are subject to RMDs;A Roth 401k may be transferred to a Roth IRA (Note that from a planning perspective, it may be advantageous to transfer Roth Solo 401k funds to a Roth IRA before turning age 70 ½ in order to escape the Roth RMD requirement applicable to Roth 401k contributions including Roth Solo 401k contributions and earnings.)

My question is - is there a "direct roll over qualified plan" I can use to avoid the tax and apply the entire $68K toward the rental property?

Due to our aggressive pricing of the houses, the realtors we have consulted have each stated that they anticipate the houses could be sold within 30 days of completion, bringing the total investment time of each house from start to sale to 120 days.We have several homes to build and therefore, we would also work with an investor / partner who would prefer to roll-over their $10,000 investment into the next house, and take out only their profit, therefore, after the second house is sold, the investor / partner has made a 100% return (all in less then one year).Everything is documented, and we would welcome you to have your lawyer review the entire investment / partnership before you move forward.

Hey Guys! The BP Podcast with Amanda Han on taxes last month really got the gears turning in my head. For anyone who hasn't listed to it yet... it's a great one! Episode 162 Now onto my question.. I have a traditional...

Since I dont' have a small business yet, my first thought to obtain a Solo 401(k) is as follows:Open an LLC to have a part time small business;Rollover my current IRA to a Solo 401(k) plan.Both the LLC and the Solo 401(k) will be focused on real estate investment.

You could use a Rollover as Business Startup structure to have the IRA capitalize a C Corp that could be used to flip houses.  

@Chris OswaldThe timeline will depend on where the funds sit today, but about 3 weeks total is normal to have a plan setup, receive a rollover from a prior institution and be in a position to invest.You may not benefit in any way.  

I'm not going to roll over and play dead.

Has anyone used ROBS to start their business?  Sounds like a good way to get access to cash and invest in real estate.  Even get partners to invest and get shares.  Love to hear your thoughts.  I'm considering doing t...