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Can you roll over 401k into real estate without taxes and penalties?
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2 Replies
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Yes, you can roll over a 401k into real estate without taxes and penalties by using a self-directed Solo 401k plan. This type of plan allows you to invest in real estate as long as all income and expenses related to the property flow in and out of the 401k account, and there is no personal use of the property. It’s important to note that there are certain limitations, such as not being able to work on the properties (no “sweat equity”) and the requirement that the real estate investment must adhere to IRS rules regarding prohibited transactions and disqualified persons.
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