I have a solo/single K plan. My question is can I invest in realestate. Specificaly< I already own an investment property(single family house) that is
rented out. I want to buy the house from myself with the funds from my 401k (purcahse price 200,000, with a mortgage balance of about 110,000) I would take
the proceeds form the sale (90,000) and put it in a special account to be held to invest in a "like kind exchange" for another rental property I
would rent out (outside of the 401k) That I eventually intend to move into. I guess the real problem or question is am I able to buy an investment property
from myself?
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realestate
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 ruddyduddy |
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Posts: 1 (06/22/08 04:42:54) |
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jdnay |
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Posts: 349 (06/23/08 12:32:16) |
You can purchase real estate as an investment in a 401(k), but you should check to see if your custodian can/will handle such assets. Most that I know of will
not.
As far as selling your 401(k) a house that you own, that would be a prohibited transaction -- self-dealing. Not allowed. Prohibited transactions can lead to heavy penalties and in some case losing your retirement account's tax-exempt status. |
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