solo and Self Directed advise

[Aaron T.]

Before the end of the year I would like to move my IRAs and TSP out of the stock market. I am looking for some advice/guidance on the best strategy to make this happen.

here is the run down

- Currently invested in TSP (government) and Roth IRA, but want to pull it all out before the end of the year.

- Wife works for herself and has Roth IRA, I am thinking a Solo 401k would be a good fit.

Goals: to invest in real estate, particular in short term rentals, as well as lend money to other investors. 

any good guidance or references I can read/talk to? I was starting to read through the QRP book from Damion Lupo, but realized he is just selling a Solo 401k. although its still good information.

please give me any good bad or ugly.

[Aaron T.]

Originally posted by @Justin Windham:

@Aaron T.

While traditional IRAs and TSPs can be transferred to a Solo 401k, a Roth IRA cannot. The only option for self-directing an existing Roth IRA is to setup a Roth IRA with a self-directed IRA custodian and transfer the Roth IRA assets over. If you want checkbook control of that structure, an LLC can be created for this purpose.

Both the Solo 401k and IRA (LLC) can allow you to invest into real estate and lend money to others. They could also be used to invest into short term rentals, but there is a potential for taxation and prohibited transactions that would need to be navigated.

 Justin,

thank you for the response. 

I will have to explore rolling over the Roth IRA under a custodian.

I dont mind starting from scratch to put into a SD 401k, but I was hoping I could roll over the larger chunk of the TSP.

I may have to reevaluate how to move forward with the long term money.