Rollovers from retirement

2 Replies

Hey guys,

 new member here. I recently listened to the Gabe Desilva podcast here and it he mentioned through out that he rolled his 401k to aan ira to avoid early tax penalty. Im looking to do this same thing with my retirement fund. I talked to a financial advisor but he says he didnt have many answers fore other than that id still be penalized. Can anyopne give me some insight here on what to actually do and if its still taxable, what is deemed the least taxable account i can withdraw my funds to purchase this property?

@Rayne Skoglund

So there is a couple of questions you need to answer first before we can give you any specific advice on what to do with your retirement fund.

1. Are you still employed with the company your 401K is held at?

2. How far are you from retirement?

3. Do you plan on staying at your current for longer than 5-7 years?

So if you can give us a good picture of your situation, we can give some idea of what you do.

@Rayne Skoglund

Yes a 401k can be transferred to an IRA and then invested in real estate. However, if you are still employed with the employer that offers the 401k and your are not over age 59 1/2, you will most likely not be able to transfer the 401k to an IRA.

One way of determining if your current employer will allow you access your retirement funds while still working for them, is to check the summary plan description (SPD) for the existing plan. The SPD is required to be written in a language or format that is easily understood by participants. Larger plans usually make the SPD available on the company’s benefits website. If the SPD is not available, the plan administrator or human resources department should be contacted for a copy of the most updated version.

If you are able to transfer the 401k to a self-directed IRA, a custodian that offers self-directed IRAs is IRA Services Trust Company.

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