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Tax, SDIRAs & Cost Segregation

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Sean Vanderveer
  • Sherman, TX
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SDIRA vs Solo401k - Multiple Q's

Sean Vanderveer
  • Sherman, TX
Posted Jul 9 2019, 11:06

We own multiple commercial properties in our downtown (Series LLC in TX) and have several under contract. We are looking to roll over our traditional IRAs to make the purchase w/ a non-recourse loan. I have read every post I can find on BP (and watched a lot of YouTube videos) about SDIRA vs Solo401k and I am still not sure which way to go. I have read that S401k is not subject to UBIT and other taxes. Also, S401k has no IRS reporting until the total is $250K+?? Is this correct? Is S401k the best route? Who do you recommend to help with the SDIRA / S401k setup? Approximately what is the timeline to get the funds moved?

Also, can our series LLC purchase the properties from the SDIRA / S401k at a later date? Can we have them appraised by an independent appraiser to establish a value? Or does this violate the prohibited transactions rule??? Anything else we need to think about??? Thank you in advance for help/experience/wisdom.

PS: Thanks BP and all members for the wealth of knowledge found on this site, the podcasts, and books. I find myself browsing topics I am dealing with and other topics that I may approach in the future, constantly listening to podcasts and reading.

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