Questions about moving my current 401(k) to a solo 401(k)

[Alex Billips]

I have a 401k at my current job. I’m wondering if I can change it to a Solo 401k with checkbook control and then use the funds to invest in single or multi family rental properties that I am the sole owner of.

I also currently have been buying foreclosure properties and flipping them and rolling the capital.

I was also wondering if I can also use the Solo funds to buy foreclosure properties to hold for rentals long term.

Sorry if I’m asking to many questions just excited to keep moving forward. Looking to leave the 9-5 behind me ASAP.

[Dmitriy Fomichenko]

@Alex Billips

If you are eligible for a Solo 401k plan, you can set one up for your business and fund it with new contributions and rollover from another qualified plan. If you set up truly self-directed Solo 401k plan then you can use it to make alternative investments such as buying rental properties. Yes, you can buy foreclosures in your 401k, fix them up and hold as long term rentals.

If you have a 401k with your current employer - most likely they are not going to allow you to move it out while you are employed there. You could do so when you reach retirement age or leave this employer. To confirm you need to contact your plan administrator and ask them if you can do "in-service distribution".