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 (IRAL 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 plan is to use my 401 k to obtain duplexes from which I will fund my retirement with the net cash flow...

We have two goals (a) For this year i.e. 2016, we want to open a solo 401k where my wife can put maximum retirement savings whatever maximum she can.

I was sick and tired of being sick and tired.Fast forward 5 years... after reading many business books and working like no one else, I'm now retired with two successful million dollar companies that I personally started from the ground up.

The did count retirement accounts but at a 40% discount.

My ultimate goal is to generate enough passive income through real estate to get my time back and focus on raising my young family, also a very important goal of mine is to retire both of my parents, take care of them, and buy them a nice house to live in.I am interested in doing wholesale deals in Northeast Atlanta and would love to team up with investors, cash buyers and agents from this region.

@Carlos Araujo,Learn about how to attract and engage private lenders - people looking for better returns with less risk and volatility on their retirement accounts, for example.Read up on self-direction of retirement accounts so you can educate potential private lenders.

For those that don't know the market, a majority of the properties in the area are absentee owners like us or retired couples.

I'm meeting with them along with my other tenant tomorrow I am going to hand over the letter in front of my other tenant so they cant play they never rec'd it type excuse.Its funny the mom is a retired vet!!  

Some retirement accounts aren't accessible until you quit your job or hit a certain age and they typically won't accept those kind of reserves.