Self-Directed IRA To Purchase Rental Homes

[Charles May]

Hello,

Sort of new to BP. I am looking to purchase a rental home in my area, current listing is for $49K. My question is this. I have around $20K in my current 401(k) at work that I would like to roll into a SD IRA. 1. Is this even possible? 2. If so, what steps do I take to get it facilitated?

Any information would be great, I think this home would make a perfect "starter rental" for me and I want to act on this soon.

Thanks again,
Charlie

[David Beard]

That won't fly, that's a disallowed transaction. You cannot derive a personal benefit through the use of your tax-qualified account.

And, you almost certainly cannot pull a 401K out if you are still actively working there.