Real estate has always been a lucrative investment and it is considered as one of the most secured choices with higher returns. Entrepreneurs and small business owners often invest in real estate. Are you interested in real estate investments? The good news is that solo 401 k plan allows you to invest in real estate and you can even enjoy tax-deferred gains. Solo 401 k investors can use their plan for investing in commercial, residential, domestic, and foreign real estate. You don’t even need custodian consent for investing in real estate.
Tax-Deferred Gains: Flip Houses with Solo 401 K Plan
If you have never made a real estate investment with solo 401 k, don’t be afraid of the legalities because it’s as simple as writing a check for the property. IRS allows the trustees of solo 401 k plan to make a real estate investment and the property will belong to your plan only. All you need to do is to write a check and purchase the property of your choice.
The best part of flipping houses with solo 401 k is that you can use this money for purchasing the property, repairing it, and even flipping it for property without requiring any third-party consent. Any profit that you make in the deal is tax-deferred and you would be required to pay taxes only at the time of distribution.
How Solo 401 k Plan is different from traditional 401 k plan.
In case of traditional 401 k retirement plans, you need permission from the custodian. Nearly 95% of the custodian won’t allow real estate investments. On the contrary, you have complete control over solo 401 k plan and you don’t need third-party consent for making a real estate investment. The best way to use your retirement funds for real estate investment is to start a solo 401 k and and enjoy solo 401 k plan benefits.
If we average real estate investments with stock market, properties have always performed better and investing in it will ensure best returns for your investments. You can even use the property for rental and then sell the house after a few years. However, make sure to consult a retirement expert or agency to understand different aspect of the process and the best tips for saving maximum tax money. It is time to have complete control over your retirement funds and live a prosperous life even after retirement.