Investor · New York City Metro area, NY · Member since 2013 · 39 posts · 12 votes
Hi BP family!
I've spent months in researching my next move with my 401 (k). I've made the decision that I will rollover my 401 (k) to a self-directed plan which would allow me to start investing in Tax Liens and perhaps consider Private Lending. A major factor is that being self employed gives me the flexibility of making substantial yearly contributions. I'm wondering if anyone has considered or is currently under such a plan and how has it been working for you? I'm still researching companies that would offer major support along the way including having extensive knowledge in real estate and taxes. I welcome your thoughts and perhaps advise me on reputable companies I should be considering. Many thanks!
this is a great decision to be in charge of your retirement funds, if you are willing to put some effort in it - you'll do much better than being in the stock market.
Self-directed Solo 401k plan is a great choice, it will not only enable you to invest in alternative assets, but it is also great tax-sheltering vehicle, allowing you to shelter up to $53,000 per year from your income.
Yeah, that's great. I consider myself handy, but I'm no construction professional. I think it's a huge advantage for builders and construction pros to be able to do the work on their personal deals.
CPA delivering RE Tax Tools: 1031 Exchange, SDIRA, 401(k), Cost Seg · New York City, NY · Member since 2017 · 581 posts · 563 votes
9y
@Kenneth Johnson Most employer sponsored 401k plans don't allow you to rollover the funds while employed, but once no longer employed you can certainly do so. Even while employed, the restriction on rollovers is imposed by the plan sponsor/administrator, not tax law.
401k funds can be rolled over to IRAs, another 401k (including a Solo 401k, if there's some form of self-employment income). Any of those can be implemented with checkbook control to provide a great RE investment vehicle.
Investor · El Paso · Member since 2020 · 2 posts · 0 votes
4y
Hope things are going well for you. Do you mind sharing what plan u need up going with? Also how has it been working out for you? Are there are there any things you dont like but that u really like about the plan and the process. Any pot falls u have encountered. Thanks in advance great post with some amazing responses. Thank you everyone the thread was very informative!