Tax-Free House Flipping with a Solo 401k

June 21st, 2017

Since the creation of the Solo 401(K) Plan back in the early 1980s, the IRS has always permitted a Solo 401(K) Plan to purchase, hold, or flip real estate. ┬áBy using a Solo 401(K) Plan, also known as a self-directed 401(K) Plan or Individual 401(K) Plan, to buy real estate, you will be able to […]

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UDFI And Using A 401(k) Plan To Buy Real Estate

February 24th, 2017

One of the advantages of using retirement funds, such as a 401(k) plan, to make investments is that, in most cases, all income and gains from the investment will flow back to the 401(k) plan tax-deferred (or tax-free in the case of a Roth). This is because a 401(k) plan is exempt from tax pursuant […]

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Is a Solo 401k Subject to the Same UBTI Rules as a Self Directed IRA?

October 12th, 2016

Yes and No. Like an IRA, the tax advantage of a Solo 401(k) Plan is that income is tax-free until distributed. In general, an exempt organization is not taxed on its income from an activity that is substantially related to the charitable, educational, or other purpose that is the basis for the organization’s exemption. Such […]

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How to Use a Solo 401k to Purchase Real Estate

July 14th, 2015

Most people mistakenly believe that their 401(k) must be invested in bank CDs, the stock market, or mutual funds. Few Investors realize that the IRS has always permitted 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 […]

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