Can I roll my 401k from a previous employer into rental real estate?

3 Answers

  • Anonymous
    1 decade ago
    Favorite Answer

    There are so-called "self-directed" IRA's that this can be done with.

    There are an amazing amount of restrictions and caveats in doing this, and the mortgage loans you can get under this are totally different from a normal mortgage you as a person can get.

    Unless your rollover would get you a 30-40% down payment, don't bother. That's what you'll need to put down on a transaction like this.

    Do a search for self directed IRA. You'll find dozens of specialist sites that handle this kind of stuff. Read a bunch of them first, then call a couple that you liked best. You'll find out pretty quickly whether this can work for you or not.

    Source(s): 10 years in mortgage banking
  • 1 decade ago

    It is my understanding that a 401K must be rolled over into either a new 401K or an IRA to avoid tax consequences

  • Wundt
    Lv 7
    1 decade ago

    Not without paying taxes.

    It perhaps might be possible to find a 401K that has a realestate component.

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