All Forum Posts by: Tony Tran

Thanks @Scott W.

Roth IRA allows for withdrawal of contributions at the 5 year mark. I am currently looking into pre-tax contributions because it allows me to lower my AGI.

Bryan H., good point! I am planning on doing something similar. The return outside of the employer 401k is much higher.

Jeff Barnes, I agree. A Solo 401k would be the ideal setup, but since I am still with my current employer. I cannot rollover the 401k to another custodian. I think the best option for me would be similar to what Dave T mentioned.

To maximize my current retirement capabilities, I would need to create both an SDIRA and a Solo 401k. After the employer match, everything goes into the SDIRA and Solo 401k.

Thanks guys for the insight. It has helped alot.

Kirk Chisholm,

Thank you for the clarity in your response. This is very helpful.

Thanks Jon Holdman

Assuming the employer matches 100% of the amount contributed. Knowing that a traditional tax-deferred 401k allows me to borrow up to half of investment dollars (that inclusive of company match funds), or up to $50k, as a loan. I can just “borrow” all the initially invested pre-tax dollars at a very low interest rate over the next 5 years and use it to purchase real property now.

The benefits are:
- Low interest rate (fixed).
- Your “actual” money earn before tax can be used. Means more money to invest with and compound long-term.
- Buy property now rather than later.
- All loan payments including interest goes straight back to the 401k. Pretty much paying yourself back.

The downsides are:
- Loan payments must be paid with “after tax” dollars.
- There is usually a trustee processing fee. Mine is $50.
- Must have money to pay leveraged 401k loan back.
- If you terminate with your employer, the trustee may ask for the whole loan to be paid back right away.

Just a reminder, this is not a legal or tax advice, or of such.

Any thoughts? Risky?

I agree with Scott W., I don't think I can invest in a small cash-on-cash return. I expect to get all my initial investment back within 3 years.

If the numbers looks right (cash flow and appreciation permit), a cash-out refinance may in order within the year.

Good whiskey!

Robert LaBrie, your annual gross income (AGI) minus any deductions and exemptions for the year determines your tax bracket for that year. The tax brackets change each year.

** Please note that I am not a tax advisor/accountant/CPA/lawyer and this post is not tax or legal advice(s). Get ahold of your tax advisor for more information. **