Posted by Dave W on January 11, 2004 at 17:39:34:
You can use a 401K to purchase real estate, but the manager of the account (your employer) has to permit it which from what I;ve read most don’t. If it’s allowed you could always take a loan against your 401k to purchase property.
401k - Posted by mike-nc
Posted by mike-nc on January 11, 2004 at 12:49:24:
I see a lot of articles about useing IRA’s and 401K’s to purchase real estate.I understand useing IRA’s but I dont see how I can use my 401k to purchase real estate. My 401k is through a company I work for.
Re: 401k - Posted by Kent TN
Posted by Kent TN on January 12, 2004 at 13:58:28:
You will need to transfer or roll-over the money from your 401k to a traditional IRA. You usually do this when you change jobs or your employer chooses a new plan to manage 401k money. I’m not sure you can transfer your money out of the 401k with no reason. This transfer is done with no penalties or tax as long as it goes from one plan to another. Check out equity trust company or entrust online. Both have very informative websites. You can open a new IRA in both you and your wifes name and deposit $3000 in each for 2003 as long as you open by April 15th. You can also deposit $3000 in each for 2004. That’s a good start.
Most RE investors get unbelievable returns in their IRA. I have 2 self directed Roth IRA’s which grow tax free and will never be taxed. My advice is for any investor to open these accounts immediately and start investing. After you get any match at work (usually 3%) your next best investment is 2 Roth IRA’s. Hope this helps. As you can tell I really enjoy this topic!
Re: 401k - Posted by jason
Posted by jason on January 12, 2004 at 13:49:39:
Interesting thread:
http://www.creonline.com/real-estate-financing/wwwboard6/messages/5417.html
Re: 401k - Posted by jason
Posted by jason on January 12, 2004 at 13:12:18:
Not sure if this is wothwhile for you and if you want to do this, but in my opinion most plan administrators (not you company’s HR) have some clause where you can “get a loan” to buy property. In other words, you (or your 401k account) loan yourself money, then pay interest to yourself - usually thru payroll deductions and buy property with the money you loaned yourself.