QUESTION: Dear Sir or Ms. Thank you for your informative article. (Educational blog) My question to you is can I roll a defined contribution annuity into the self-directed solo 401k? Now is the window for me because I haven’t contributed to it for 3 yrs. and this allows me to do a rollover. My goal is to invest it into a foreclosed home. Thanks for your help!
ANSWER: Resulting from EGTRRA regulation effective 2001, yes defined contribution annuities may be transferred to a solo 401k. Once in the self-directed solo 401k, the funds can then be invested in alternative investments including foreclosed homes. Click here to review procedure for investing in real estate with solo 401k funds.