Corona Related Distribution (401K Distrubtion)

[Trevor Hatchard]

Hey y'all,

Looking for any help and advice with this process, I want to use my 401K Schwabb from my previous employer and reinvest it into a multifamily property in southern california. I understand this takes creative financing to a different level, but I do believe in real estate and believe that this model will serve me better long term than the investment account. (Side note: I will still be paying into an account, over the course of the next three years so as to replenish the amount I end up borrowing) 

Thanks in advance for any help!

[Greg Scott]

Trevor:

This is actually pretty easy.  I've done this same things several times.

Either loan yourself the money (legally you can borrow $50K or half, whichever is less) or just get a distribution and pay the taxes.  Under CARES you may be eligible to waive the 10% penalty.  

If you are thinking of buying the property inside a 401k, you had best know what you are doing.  Some here love that idea but I can give you a dozen reasons why I would never do that.