roll over to new 401k provider or move to solo 401k?
Hi BP Community!
I wanted to run this buy you savvy investors on what you would do if you were given our situation. So, I have a 401k from previous company Walgreens and now I work at CVS pharmacy. I am going to be allowed to roll over 401k starting April 1 and begin max contribution.
So, our goal is real estate investing in buy &hold/wholesaling and flipping (already in the field). Our tax person mentioned that if we move it into a solo 401k then i will be taxed significantly because it will bump me up to a new tax bracket. He said it is better to just roll it over to the new 401k provider and contribute max because then that money from each paycheck will not be taxed as well. What is holding me back from being happy with this strategy is that I do not want to wait until retirement age to be able to withdraw these funds. I would like to use them asap and start acquiring properties.
HERE IS MY QUESTION: is it wise to take the loss and move it to a solo 401k so we can use it to invest or just roll it over and not make it so complicated?
Any help would be appreciated and hope this all made sense.