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Use Your 401K to Make Real Estate Investments
Most people mistakenly believe that their 401K must be invested in bank CDs, the stock market, or mutual funds. Few Investors know that the IRS allows real estate to be held inside 401(k) retirement accounts. Investments in real estate with a Solo 401(k) are fully permissible under the Employee Retirement Income Security Act of 1974 (ERISA). IRS rules allow you to engage in almost any type of real estate investment, aside from any investment involving a disqualified person.
“It’s Time to Let 401(k) Holders Invest Like the Pros… Alternative Assets, such as private equity and real estate, could help optimize millions of retirement portfolios”
– Wall Street Journal
Why Work With Us?
We help our clients take control of their retirement funds and gain the ability to invest in almost any type of investment tax-free. We have helped thousands of clients invest in foreign and domestic assets. When you choose us, you have a direct and unlimited access to our in-house tax and ERISA professionals to ensure that all established tax structures are IRS compliant. We offer a full IRS audit guarantee and stand by the legality of our structures and will fully defend their merits against any IRS audit.
Our tax and ERISA experts have helped over 16,000 clients invest $4.6 billion in alternative assets.
IRA Financial Group’s founder, Adam Bergman, is the author of seven books on Self-Directed IRA retirement plans.
Bergman is a frequent contributor to Forbes.com and is an official member of the Forbes Financial Council.
Types of Real Estate Investments Using 401K
Below is a partial list of domestic or foreign real estate-related investments that you can make with a Solo 401(k):
- Raw land
- Residential homes
- Commercial property
- Mobile homes
- Real estate notes
- Real estate purchase options
- Tax liens certificates
- Tax deeds
Investing in Real Estate with a 401(k) is Quick & Easy!
Set-up a Solo 401(k) Plan with IRA Financial Group.
Identify the investment property.
Purchase the investment property with the Solo 401(k) Plan – no need to seek the consent of the custodian with a Solo 401(k) Plan since you serve as Trustee and Plan Administrator.
Title to the investment property and all transaction documents should be in the name of the Solo 401(k) Plan. Documents pertaining to the property investment must be signed by you as Trustee.
All expenses paid from the investment property go through the Solo 401(k) Plan. Likewise, all rental income checks must be deposited directly in to the Solo 401(k) Plan bank account. No 401(k) related investment checks should be deposited into your personal accounts.
All income or gains from the investment flow through to your 401(k) tax-free!
What Our Customer Have to Say
“IRA Financial Group was AMAZING to work with. They went above and beyond all of our expectations. We hit a few bumps in the road with the IRA rollover and the IRA Financial Group team was right there to help get everything worked out and to make sure that my rollover was done correctly and I was able to complete my real estate transaction. The IRA financial Group and specifically Jacky was always willing to answer any and all questions as fast as they could. I would and will definitely refer anyone to IRA Financial Group who is looking to establish a “checkbook control” self-directed IRA to purchase real estate.”
– Dr. Yusuf Mamdani, NJ
“At the beginning of 2014 I learned of an opportunity to invest in what would be a series of real estate, single-family home building projects with an excellent builder in New England who I knew well. However, all of the funds I wanted to invest via construction loans to the builder secured by promissory notes were in my Roth IRA account held by one of the major investment firms. When I began reading about options to do a self-directed IRA with checkbook control, I made contact with IRA Financial. Not only was it easy to work with the staff and the attorney assigned to me, the whole process was completed in a very short time and for a very reasonable total fee of $1,500, including setting up my LLC and my account with IRA Services Trust Company.
In short, setting up my self-directed Roth IRA with checkbook control has not only been very successful (two projects completed with closings in the first year) but it has been really easy. Being able to write checks for staged construction loans and then getting the principal and interest paid back into my LLC account when the projects closed has been an excellent experience. Thanks to IRA Financial for making this all work so well.”
– Hank Steenstra, VA
“I moved my IRA funds to IRA Financial Group because their program gives me checkbook control. I use my IRA for fix-up Real Estate. Checkbook control gives me the ability to pay Subs. quickly to get the best price. I have found IRA Group staff to be very responsive to questions and very professional. Not wanting to put my IRA in jeopardy, this is extreme helpful. They get a full 5-stars out of 5-stars from me!”
– Walt M., OH
“What about your IRA, including rollover IRA? You need to look at state law, advises tax attorney Adam Bergman of New York’s IRA Financial Group.”
“Adam Bergman…gets several calls a day from clients like McDermott looking to invest their retirement funds in real estate. ‘Our average client has retirement accounts of about $150,000 and is looking to buy one or two properties.'”
“Jeff Brown…transferred roughly $50,000 from his workplace 401(k) to purchase homes to fix up and sell…He uses a self-directed IRA that he set up through IRA Financial Group in Miami Beach.”