Taking property out of Sol 401k

[Charles Wilson]

I have purchased property with funds from my Sol 401k. I own 4 properties out right in my Sol-k. Is there a way to take the property out of the Sol 401k. I understand that there will be taxes that have to be paid. But there should not be any penalties because I am over sixty. For example I paid cash for a condo, would like to take out of Sol-k and own as personal to take tax advantages. Is this something that would be possible? Are is there a better way to increase ROI. Also thought about taking out a non-recourse loan and using that loan money to purchase partial mortage notes with that money. Trying to think outside the box anyone with any ideas?

[Dmitriy Fomichenko]

Charles, you can do that as what's known "in-kind distribution". Contact your 401k provider firm for assistance and guidance on this process.

In light of Brian's comments above, if you are willing to take the tax hit on the distribution - you may want to consider converting portion of your 401k into a Roth (you would have to pay the same tax rate), however from this point on all the income from the property will be tax-free for the rest of your life.

I am not a CPA so be sure to consult with a qualified tax professional.