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Updated over 3 years ago on . Most recent reply

User Stats

345
Posts
288
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Jeff Wallace
  • Rental Property Investor
  • The Woodlands, TX
288
Votes |
345
Posts

401k rollover to purchase rental property

Jeff Wallace
  • Rental Property Investor
  • The Woodlands, TX
Posted

I would like to hear feedback from anyone who has successfully used a Rollover as Business Startup (ROBS) or a Business Owners Retirement Savings Account (BORSA) to use assets in a 401k to fund investment real estate purchases. Has it been a positive experience or overly cumbersome? I am aware of the potential to roll assets in to a self directed IRA, however that option doesn't appeal to me since I wouldn't be able to use the rent income until 59.5 (my goal is to resign from my current job and would like the income to replace my salary). Thanks, jeff

Most Popular Reply

User Stats

345
Posts
288
Votes
Jeff Wallace
  • Rental Property Investor
  • The Woodlands, TX
288
Votes |
345
Posts
Jeff Wallace
  • Rental Property Investor
  • The Woodlands, TX
Replied

@Mike Moles 

I haven't investigated the "solo 401k". I definitely will.

@Michael O'Byrne  

after more reading and looking at the difficulty of getting the proceeds out of my C-corp (paying ss, medicare, etc on salary or paying double tax on dividends) i might just take the penalty and tax hit up front and keep the rentals in an LLC ... in the long run i think i can make up the initial loss with smart buys and good rental income.

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