Any tips are things to watch out for in rolling over a 401k from a previous W2 into a Solo 401k account? Looking to use the money to invest in real estate.
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
5y
I know I'll get some haters for this comment.
Investing in real estate within a 401K is generally not a good idea. As an investment vehicle, Real Estate gives you many options for avoiding tax entirely. When you put Real Estate in a tax-deferred vehicle, you create a situation where you will eventually pay ordinary income on all monies you take out. In other words, it is very easy to pay MORE taxes by doing what you propose.