Using my 401K to Rehab/Flip Houses??

[Kenneth LeBeau]

Hey all,

I know this subject has plenty of posts in here but some of it wasn't clear to me and everyone's situation is unique.

I have a 401K with my current employer with approx. 58K in it and another 20K in an outstanding loan. What would be my best and hopefully easiest option for gaining access to this money to use to rehab/flip houses? Cashing out and getting nailed with the taxes and penalties is definitely not an option that's on the table.

I found the list on here with all the companies that handle the self directed IRAs and plan on calling and seeing what they can do for me, if anything. In the meantime Id like to pick the brains of you guys on here about possible options of mine.

Thanks in advance!!!

Kenneth

[Brian Eastman]

@Kenneth LeBeau

If this is your current employer 401k, you likely have very few options. It would be unusual for you to be able to move that 401k to another IRA of your own choosing unless you change jobs or reach age 59 1/2. Even if your employer does allow for an in-service rollover to another plan, you would need to retain $20K collateral for the loan in the plan, so you would only be able to move $38K.