Self-directed 401k As A Portion Of A Down Pmt
Can I rollover a 401 K from a former employer into a self directed plan that allows me to purchase shares of the LLC that I have formed w/ two other people? In other words(hypothetically), if I formed a LLC w/ two other people and we needed $100k each to buy an investment condo, and I only had $80k, can I use $20k from a former 401k and self direct it into the LLC:-? Thanks in advance...
Before you go that far, you must first check with your employer to see if they will even allow you to move your 401K. most will not if your employeed with them. however, you can roll your 401K over into a roth ira. check with equity trust or www.midoh.com and click on the link at the bottom and it will take you to their site. They have a lot of info on that kind of stuff....the do's and don'ts
Thank you.
Just remember that YOUR IRA can NOT be YOUR partner in any RE deal.
So even if you could do a rollover into your own IRA, you couldn't then use it to be your own partner.
Sonebody on another board said I could partner with IRA, me owning 50% of a RE, IRA owning other 50%. He is wrong then?
Here it is:
Some custodians don't allow financing on properties you buy with a self directed IRA, I have seen one custodian whose web site says they allow up to 50% financing, and others where they say they allow financing.
Make sure you read the terms on web sites and get confirmation from one of their customer reps.
By the way, since this is a tax lien forum, you can buy a WHOLE LOT with ***. You can also split a property 50-50 (or 40-60 or whatever) between you and your IRA. Let's say you buy a house for $240. You can put up 120k from your regular funds (or get a mortgage in your own name). Then you (= Ahmed) will own 50% of the house, and your IRA will own 50% of the house.
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Abdenour
Wellness Enterpreneur and TLC Newbie
The two biggest SDIRA custodians are MidOhio (now Equity Trust) in Ohio, and Entrust.
There are others too, so I"d do a search on one of the search sites and you'll find a number.
The two mentioned both have nice websites and knowledgeable customer reps who can tell you their current policies re RE owning & operating within IRAs..
I have no financial ties to either or any SDIRA trustee or custodian.
IRS Pub. 590, which you can find on the IRS site, and print (it's about 80pp.!!!) can answer a lot of these questions for you.[ Edited by JohnMerchant on Date 11/17/2003 ]