Transfer 401k to Self-Directed IRA LLC

QUESTION: I live in Virginia and I have a 401k account that want to roll over into a Roth IRA or traditional IRA so I can minimize taxes and fees and use some of the money to purchase a home as an investment in Virginia. Is this possible?

I am no longer working for the company where I started the 401k and can transfer it.

Any info would be great!
Thanks for your time,


ANSWER: We can facilitate the setup of a self-directed IRA LLC that would allow you to invest in real estate including a home; however, you will not be able to use or live in the house as it would be considered prohibited.  In short, since the Self-Directed IRA LLC would be the owner of the house, disqualified parties such as yourself, your spouse, parents, children or anyone providing services to your Self-Directed IRA may not use the property.  To learn more about the prohibited transaction rules visit:  IRA Prohibited transactions

The rules permit the transfer of 401k funds directly to Roth IRA; however, your current 401k administrator will need to issue 1099-R to the IRS to report the 401k to Roth IRA conversion.

About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>


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