401k & Investing in Realestate Portfolio??

Question

I currently work for MMR Group I just formed my first LLC with the intentions to build my real-estate portfolio for retirement and income purposes. I have one property listed under it not generating income at the moment. My 401k is currently vested with Principle and managed by MMR Group the company that I work for. I would like to be able to use my 401k to invest in my real-estate portfolio. How can I do this?

Tina Jenkins · Answer

What about a loan against it is that an option for my first deal?

Tina Jenkins · Answer

Thank you that was very helpful.

George Blower · Answer

@Tina Jenkins

Unless you meet a distribution triggering event, you may not be able to transfer that 401k,  Here are some examples of triggering events:

• Reaching retirement age. This is usually defined by the plan, and typically ranges from age 55 to 65; however, the actual retirement age may vary among plans. As such, the plan must be consulted to determine its particular requirements and definitions.
• Termination of employment
• Disability
• Termination of the plan

Some current employers may allow for partial or full-transfers from 401k and profit sharing plans even if one of the aforementioned triggering events have not been satisfied.

One way of determining if your current employer will allow you access your retirement funds while still working for them, is to check the summary plan description (SPD) for the existing plan. The SPD is required to be written in a language or format that is easily understood by participants. Larger plans usually make the SPD available on the company’s benefits website. If the SPD is not available, the plan administrator or human resources department should be contacted for a copy of the most updated version.

Tina Jenkins · Answer

Thanks for your reply Brian.  At the end of each job I get laid off until another job comes available.

Brian Eastman · Answer

@Tina Jenkins

If your 401(k) is with your current employer, then you likely do not have much in the way of options.  Those funds will be trapped in that plan until such time as you change jobs or continue working with that employer past age 59 1/2.

A self-directed IRA allow for retirement savings to be invested more broadly than just the stock market, but it does not sound as if you would have the ability to move funds to such a plan.