All Forum Posts by: Justin Windham

@Jamie Mathieu, are you looking for checkbook control?

Welcome to BP, @Nicole Glaros. Congrats on being off to such a great start!

Right. As mentioned in other posts, children of an IRA accountholder are disqualified persons with respect to the IRA, making transactions between the 2 prohibited transactions.

Welcome to Bigger Pockets, @Greg DuPan! Some excellent info there from @Brian Gibbons. Regarding the use of self-directed accounts as mentioned in Brians "Exception" paragraph, I will add that the Solo 401k is exempt from most instances of UDFI when leveraging properties. This is a nice benefit over a self-directed IRA.

Excellent responses above. I will add that many concerned with compliance and IRS scrutiny are comforted by the fact that the Solo 401k often comes with an IRS determination letter addressing the structure's legitimacy.

Hi @Esmeraldo Manubay, and welcome. You'll need a company who can provide you with Solo 401k documents that your business or self-employment activity can adopt. With the right documents you can have the option to either borrow funds from the Solo 401k to use personally or invest the Solo 401k funds directly into real estate as others have alluded to.

Hi, @Victor Sirippi. Welcome to Bigger Pockets. Good luck with your goals. This is a great place to learn how to achieve them.

@Chuck Van Court Hi Chuck. Since you mentioned "Solo 401k and/or self-directed IRA," I'll just comment on this. Generally, if you're eligible for a Solo 401k, that is the way to go since it has so many advantages over a self-directed IRA / IRA LLC. Eligibility requires that you have some self-employment activity and no full-time, non-owner W2 employees in your business.

@Michael Slockers I will add that I've seen some CPAs working with Solo 401k participants who have determined that there is at least some earned income from their activities related to their rental properties. I'm sure it depends on the CPA and the actual activities performed, which is going to vary on a case by case basis. Though I thought it was worth mentioning.

Welcome to BP, @Michelle Bell. Looks like you're off to a great start since creating this thread. As you can see, the forums here are a great resource.