401k questions

[Abdul R.]

I got some funds tied up in three 401k accounts. two from prior employers; one from current employer. I would like to release those funds to invest in real estate. I don't like to loan money from my own 401k. What are the options do I have? Should I take the payout from the older accounts after the penalty and the tax? Can I take a the money in any way from my current 401k? What are the ways to avoid the penalty?

[Jon Klaus]

You should be able to roll the older 401K's into a new self directed IRA, which you can then invest in real estate. You would need to follow IRS rules. You could also roll them into a new self directed Solo 401K if you set up a small business with you as the sole employee. Your contribution limits would be higher in the Solo K.