How to rollover Roth IRAs to invest in real estate?

[Rose Carter]

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

Contact

[Mark Nolan]

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.

Mark Nolan

Compliance Officer

Contact

1-800-489-7571 www.mysolo401k.net