All Forum Posts by: George Blower
George Blower has started 0 posts and replied 3583 times.
Post: Checkbook LLC for SDIRA
- Retirement Accounts Attorney
- Southfield, MI
- Posts 3,675
- Votes 1,213
There are number of providers here on BP. I suggest that you interview several. Considerations include experience with your particular investment type, ongoing support, customer reviews, transparent pricing, etc.
Post: New from North New Jersey
- Retirement Accounts Attorney
- Southfield, MI
- Posts 3,675
- Votes 1,213
Welcome to BP!
Post: Hello from a newbie
- Retirement Accounts Attorney
- Southfield, MI
- Posts 3,675
- Votes 1,213
Welcome to BP!
Post: New investor- Wilmington, DE
- Retirement Accounts Attorney
- Southfield, MI
- Posts 3,675
- Votes 1,213
Welcome to BP!
Do you intend to the 401k funds as taxable distribution (and pay the 10% penalty and income tax)? Or will you take as a 401k loan?
Regarding taking a 401k loan:
- You would have to confirm that your 401k plan allows for a 401k participant loan (and that you have not had an outstanding loan in the last 12 months).
- If yes, you can borrow up to 50% of the balance not to exceed $50,000.
- The repayment terms are equal monthly/quarterly payments (as you prefer) of principal and interest (e.g. prime + 1%) spread over a 5 year term (or longer if you will use the loan to purchase your primary residence). There are no prepayment penalties and no restrictions on what you can do with the proceeds of the 401k loan. Please note that you are obligated to pay back their 401k (regardless of the performance of your real estate investment).
- Per the loan offset rules that went into effect with the 2018 Tax and Job Act: if you leave your job and the loan is current at the time you leave your job but then the loan goes into default because you left your job, you will have until your tax return deadline (including any timely filed extension) to make the loan current by depositing the outstanding balance into an IRA (and thereby avoid the taxes and penalties that would otherwise apply).
- If you are self-employed with no full-time employees & you can rollover the funds, you could set up a Solo 401k, rollover the funds and take a 401k loan from the Solo 401k.
Post: Chicago Newbie Looking to Enter the Buy & Hold Rental Market
- Retirement Accounts Attorney
- Southfield, MI
- Posts 3,675
- Votes 1,213
Welcome to BP!
Post: Newbie in the Quad Cities/Peoria/ Central IL
- Retirement Accounts Attorney
- Southfield, MI
- Posts 3,675
- Votes 1,213
Welcome to BP!
Post: Insurance for property owned in SDIRA/401K
- Retirement Accounts Attorney
- Southfield, MI
- Posts 3,675
- Votes 1,213
1. If you owned the properties via an LLC (i.e. new LLC of which the sole member is your IRA), I suspect that you may not run into as many roadblocks since the title, insurance, etc would all be in the name of the LLC.
2. Since you already own the properties in the IRA, this would entail establishing a new LLC and then transferring the title to the LLC (assuming that the IRA trust company supports the IRA LLC structure).
Post: Newbie seeking recommendations on lenders for Cash Out REFI in GA
- Retirement Accounts Attorney
- Southfield, MI
- Posts 3,675
- Votes 1,213
Welcome to BP!
Post: Newbie in Denver, Colorado
- Retirement Accounts Attorney
- Southfield, MI
- Posts 3,675
- Votes 1,213
Welcome to BP!
Post: Eager to start investing in real estate
- Retirement Accounts Attorney
- Southfield, MI
- Posts 3,675
- Votes 1,213
Welcome to BP!