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Updated over 12 years ago on . Most recent reply presented by

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Sandy Blanton
  • Residential Real Estate Broker
  • Pensacola, FL
49
Votes |
221
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WTH do I do with my SD401K Cash? Post-Ubit are the SD accounts worth the trouble?

Sandy Blanton
  • Residential Real Estate Broker
  • Pensacola, FL
Posted

I love having lots of cash in a retirement account, safe from creditors and bankruptcy. But after learning about UBIT, i'm unsure what to do. Ideally at this time I'd like to flip. We're earning 200% annually cash on cash return on our flips (outside the retirement account). From what I'm hearing it's not worth doing them inside an SD account? It seems the safe/best? activity for SD funds is doing hard money deals for others. But, we can't make more than 20% apr on these deals.

Steven Hamilton II please share your infinite wisdom on this. Thanks folks:)

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Bryan Hancock#4 Off Topic Contributor
  • Investor
  • Round Rock, TX
4,383
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Bryan Hancock#4 Off Topic Contributor
  • Investor
  • Round Rock, TX
Replied

Who cares if you have to pay UBIT? That is the tax tail wagging the dog. Making more money is good even if you have to pay more taxes.

I like the solo K as the best tax deferred vehicle....for my situation at least. The Nabers Group and Sunwest Trust are good options here.

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