Self directed /solo 401K or self directed Roth
Hi all,
I am getting ready to go through a divorce and am looking at getting about $250,000 from my wife's 403B. I currently do not have a retirement account except for my retirement from the Navy. I was told to set up a self directed or solo 401k so that the money can go directly into that. I am currently a self employed Real estate agent but have had very little income the past 2 years because I went back to school for my MBA. Any advice on which type of account I can start and get the funds into so that I can start investing in real estate?
Most Popular Reply
If you are self-employed then you can open a solo 401k plan. The qualified domestic telations order (QDRO) rules allow for the transfer of 403(b) funds to an IRA or a solo 401k plan.
Self-employment income can be part-time and includes income generated from managing real estate or selling real estate, for example.
However, earned income from self-employment does not include the following:
- Pay received for work while an inmate in a penal institution
- Interest and dividends
- Retirement income
- Social security
- Unemployment benefits
- Alimony
- Child support.