Solo 401K vs. Self Directed IRA

[Danielle Wolter]

I have a 401K from my prior employer that has a decent sum of money in it. I have left it there for the past several years because the return have been decent. However, I think I'd like to have the option to invest in real estate with the funds I have in there.

I was going to transfer it over to a Self Directed 401K, but upon further research have determine that a Solo 401K may be the better option.

I am a W-2 employee right now, but do have a business on the side that generates income. I have set up an LLC for this business. I believe this meets the criteria for setting up a Solo 401K.

My question is, can I roll my prior employer 401K funds into a solo 401K, or do I need to start the Solo form scratch? And if I can't roll those funds over, can I open both a Solo 401K and a Self Directed IRA?

I do realize that I need to talk to a professional, I am just looking for some insights and experience for those who may have had similar situations.

Thanks!

[Steven Hamilton II]

Solo 401k. End of story. That simple. The only big difference is there is no UBIT on real estate transactions. You can even do in service rollovers to a Roth 401k plan.