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Q&A – Act as Manager for ROBS 401K Real Estate Operating Company?
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2 Replies
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QUESTION:
Could I buy (x) properties in name of c-corp and then be the property manager for them? Thinking I’d be actively managing and having maintenance and upgrades done on them to maximize rents.
ANSWER:
Absolutely – if you fund a business via a ROBS 401K you must work in the business as a bona fide employee such as by serving as the manager of the C-corporation that owns and operates the real estate operating company.
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my goal is similar. However, the IRA I want to roll *from* holds a property. Can my C-corp first purchase the property, then become the holding co for that property and then roll the funds that would be then cash from the self directed IRA into the 401 in the same C corp? Also, can this process be done in an S corp? my CPA said never hold property in a C corp because of capital gains when selling?
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- I understand that you wish to transfer real estate that is owned by your self-directed IRA to a ROBS C-corporation. This would not be allowable under the 401k Business Financing rules.
- This confirms that the entity that is funded with retirement funds via a ROBS 401k Business Financing plan must be a Corporation taxed as a C-corporation.
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