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Setting up a Real Estate 401K

A real estate 401K also known as a Solo 401K, Individual 401K, or Self Directed 401K is a 401K qualified plan that is designed specifically for the elf-employed or small business owners to invest in real estate.

Establishing a real estate 401K plan includes adopting approved IRS 401(k) plan documents. It is extremely important to work with tax professionals who have expertise in the tax and ERISA fields when establishing a 401K plan for your business. Any self-employed individual or business owner with no employees other than the owner(s) can adopt a Solo 401K plan or real estate 401K plan. Adopting the plan is as easy as signing a few pages of the Plan Adoption Agreement. The real estate 401K Plan account can be opened at any local bank or credit union. Once the Plan account has been opened, you will simply need to complete a Rollover Request Form to request the tax-free transfer of funds to the new real estate 401K Plan. All retirement funds may be rolled into a real estate 401K plan except a Roth IRA. Note, many real estate 401K plan do not accept the rollover of after-tax 401k funds even though they are permitted by law to be rolled over. Once your retirement funds have been directly rolled over tax-free to the real estate 401K plan, you as trustee will have checkbook control over those funds to make real estate and other investments tax-free and without custodian consent.

The real estate 401K Plan offered by the IRA Financial Group offers self employed business owner the ability to their retirement funds to make almost any type of investment, including real estate, on their own without requiring custodian consent tax-free! In addition, a real estate 401K Plan will allow you to make high contribution limits (up to $54,500) as well as borrow up to $50,000 for any purpose.

The most well liked aspect of the real estate 401k Plan is that one can invest in real estate using retirement funds tax-free it does not require the participant to hire a bank or trust company to serve as trustee. This flexibility allows the plan participant (you) to serve in the trustee role. This means that all assets of the 401(k) trust are under the sole authority of the Solo 401k participant. A real estate 401K plan allows you to eliminate the expense and delays associated with an IRA custodian, enabling you to act quickly when the right real estate investment opportunity presents itself. With the real estate 401K Plan, making a real estate investment is as simple as writing a check.

To learn more about the benefits of using a real estate 401K Plan, please contact a real estate 401K expert at 800-472-0646 or visit

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Posted in Solo 401(k)

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