Rolling 401k into IRA

1 Reply

Hi all - I was hoping to get some information/advice on a decision I'm considering making.  I plan on leaving my current job in corporate land soon and will be taking with me a decently sized 401k.  I have been consuming all the information I can on the topic, but was hoping to get some real life examples of people who have done the same thing I am considering doing.

What I want to do is roll my 401k, which from what I've heard/read will become an IRA after I leave the company, into a self-directed IRA. I keep reading about terms like self-directed IRA, solo 401k, checkbook IRA, etc, and I am trying to get a grasp on what they all mean.

My question is, has anyone taken an old 401k, rolled it into something like what I mention in the last paragraph, and went on to invest in real estate using those funds?

Appreciate the help in advance!

@Ryan Fish

Yes. Your old 401k can be rolled over to either a self-directed IRA or Solo 401(k) depending on your situation.

Either route would allow you to then diversify that tax-sheltered retirement savings into opportunities such as real estate. Of course, it is the plan that owns the real estate, pays the expenses, and receives the income - not you. Everything has to be done at arms' length and exclusively for the benefit of the IRA/401k

As to the details of various plan types and services models, there are several options.  Rather than spin your wheels trying to figure it out, just give a few providers a call.  A good one will help you to identify the best fit for your needs and ramp you up on your learning scale much more quickly than poking around on the web.