ForumsRollover Funds into Solo 401kHow to rollover Roth IRAs to invest in real estate?

Forums Solo 401k Rollover Funds into Solo 401k How to rollover Roth IRAs to invest in real estate?

  • How to rollover Roth IRAs to invest in real estate?

    1 Reply
  • Top SubjectSolo 401k Contributions,Real Estate Investments
    Top ForumsSolo 401k Contributions, Real Estate Investments

    Rose Carter
    Top SubjectSolo 401k Contributions,Real Estate Investments

    October 22, 2021 at 11:00 am

    I have roth IRAs and will soon open a solo 401K. Any strategy to rollover my funds in my roth IRAs to the solo 401k? My goal is to invest in real estate. Is my only option to invest in real estate for roth IRAs is through self directed IRA? I’m concerned about UBTI if it’s in self directed IRA. Please advise. Thank you!

    Rose Carter
  • Mark Nolan

    Top SubjectSolo 401k,Solo 401k Contributions
    Top ForumsSolo 401k, Solo 401k Contributions

    Mark Nolan

    Mark Nolan

    Top SubjectSolo 401k,Solo 401k Contributions

    October 22, 2021 at 3:35 pm

    Another good question. Unfortunately, there is no way to legally move/deposit funds in a Roth IRA to a Roth 401k including a solo 401k.

    As far as UBIT, this tax applies to both IRAs and solo 401k plans. On the other hand, UDFI applies to IRAs but not solo 401k plans.

    As such, if you invest an IRA in real estate that is debt financed via a non-recourse loan, UDFI will apply. To learn more about UDFI and UBIT, click HERE.

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