Group 401k to LLC 401k

[Patrick Vos]

Hi Everyone,

Looking for some advice. I'm a newbie trying to make sense of REI and trying to find away to finance my first BRRRR. I have been consulting with my current 401k plan manager and my plan is to start a new LLC for the business, have the LLC sponsor it's own 401k plan, and transfer the available funds from my current employer's sponsored plan to the new property management plan.

My question is, is there a way for me to utilize those funds as the down payment on a personal loan, not through the LLC?

Any advise or suggestions would be greatly appreciated.

Thanks,

[Dmitriy Fomichenko]

Patrick,

Welcome to BiggerPockets and congratulations on starting your REI journey!

The funds in your current 401k are locked out until you either leave your employer or reach a retirement age. You will not be able to rollover those funds in any other retirement account.

When you become eligible for a rollover, you can open self-directed IRA or Solo 401k. The funds can be used for make investments only, you can't use retirement funds to purchase residence or otherwise receive any personal benefit from it. Retirement accounts are designed for your future benefits.