Confused on Using a 401K

[Bruce Harding]

I read this article on this forum:  

https://www.biggerpockets.com/renewsblog/understan...

From everything else I have read it is my understanding that you can't get a loan against a 401K larger than $50K.   According to this article this may not be correct ?

Am I misinterpreting the article ie. Is it implying rolling over the 401K into an IRA ? I don't see the details spelled out.

I am self employed. I have a self directed 401K. I also have a self directed IRA from the past.

To roll over my 401K into my IRA I would have to shut down my S-Corp and start a new S-Corp I thought.

[Dmitriy Fomichenko]

@Bruce Harding,

The $50K limit applies to participant loan you personally can take from your 401k. This is not an investment of the 401k, it is a loan from your 401k. The loan is not against, the loan is taken from your 401k. 

You can use self-directed IRA or 401k to invest in a property, the investment would not be limited to $50K, you can buy $1MM property if you wish and can afford. Are you sure you have self-directed 401k? Can you buy real estate inside of your plan? If not then you don't have a self-directed 401k.

You don't have to shut down you S-corp to rollover into self-directed. I think you might be getting it confused with Rollover as Business Start Up (or ROBS), which is something completely different. 

This would be a good discussion to follow where you can learn more about truly self-directed 401k:

https://www.biggerpockets.com/forums/51/topics/527...