Vermont CPA Who Invests

7 Replies

I'm looking to get in the real estate game and have a job with a company that has a 401k plan. I'm looking for a CPA in the Vermont area who also invests and can give me advice as how to set up an entity, what entity to make based on what type of investments I would like to make, how to beat take advantage of the 401k through my W-2 job and things alike. If anyone knows of a CPA and could refer me, I would GREATLY appreciate it

Hi Corwin - Does your employer allow you to take loans against the 401k?

A couple of months ago I took a loan of $15,000 against my 401K to use as a down-payment on my first rental property.

IRS allows employers to adopt a policy of plan participants to take out the lesser of 50,000 or 1/2 your vested balance. It is up-to your employer to write it into the 401K plan policy.

There are downsides to taking a loan against your 401k such as the portion that you loan against doesn't grow tax-deferred free(technically it does a little since you'll likely paying yourself around 1% as interest to your 401K)

They do allow you to take loans against the 401k. I spoke with a colleague earlier this week who had done the same thing. However, long term I can only borrow so much against it (up to $50K I believe) like you said but you have to put everything you've borrowed back in before you can borrow against it again and to the best of my knowledge, can only do this once a year. I just relistened to the podcasts with Amanda Han and was wondering if I could open a self directed 401k and invest out of that by putting my money into my company 401k and keeping the contributions my employer matches and moving am of that money every quarter or so while still keeping the 401k with my employer open to still have my contributions be tax free as well as keep the money my employer matches. I also have many other questions I need professional help with and am looking for a real estate savvy CPA who can help me develop a plan/strategy to get started investing

@Corwin Hernandez  
Opening a solo 401k is great because it provides you flexibility in what you want your retirement account to invest in.

Furthermore; depending on the financial institution you choose to go to - you may also have lending abilities.

Please be mindful that opening up a solo 401k can have a 1 time set up fee with an annual fee.

I got lost about what you wanted to do with the solo 401k.
it appears that you wanted to move money from your employer 401k to the solo 401k. Employer 401k's usually do not allow you to move money out of it until you leave the employer.

I am not 100% sure of this - but I think you can only make contributions to a solo 401k with income earned through a business(outside of income earned through your employer). Also contributions to to all 401k's(solo and work) can't exceed the annual IRS limitations.

Please let me know if you have any tax questions!

Originally posted by @Basit Siddiqi :

@Corwin Hernandez  

I am not 100% sure of this - but I think you can only make contributions to a solo 401k with income earned through a business(outside of income earned through your employer). Also contributions to to all 401k's(solo and work) can't exceed the annual IRS limitations.

 Yes, Basit. You are correct. Contributions made directly to the Solo 401k must be from income earned through the plan's adopting employer. Employee deferrals to the Solo 401k and a 401k plan with the employer must be aggregated and within the IRS limits. The Solo 401k can allow profit sharing contributions beyond the deferral limit.

@Corwin Hernandez most employers do not allow you to move their contributions or the amounts you contribute while employed there until you sever your employment.

Join the Largest Real Estate Investing Community

Basic membership is free, forever.