self directed 401k

[drunkle]

i’ve read a little on self directed 401k and found that you can buy investment real estate with those funds. what i’m wondering is… is there a mandatory withdrawal at 65 or whatever? is the withdrawal based on the account value, potentially requiring liquidation of re holdings?

i was wondering about the possibility of using the 401 to buy and hold re and generate income while maintaining a low tax basis in the future.

any ideas?

[Dougie944]

Mandatory withdrawals out of a 401k start on the year you turn 71.5. I am not sure how that plays out if all your cash was tied up in a piece of real estate. I would guess that you are not immune to this law and you better have some liquid reserves to withdrawal.

In a self directed 401k, I understand that you must be able to purchase the property without additional financing.

With the current housing and looming commercial property problems, I think this would be a horrible investment at the moment.

I don’t see how starting a self directed 401k would affect your tax basis. Am I missing something?

[drunkle]

number 4 from:

http://www.nafep.com/onek/self_directed_401k_public.htm

you can get outside financing…

my thinking was to use the 401 to buy re in stable markets that dont have the boom/bust appreciation cycles of markets like california. in that way, keep the asset value of the portfolio low (lower than say 10% appreciation in ideal s&p) while still generating income via rental…

cash investments would be done through a roth…

[drunkle]

number 4 from:

http://www.nafep.com/onek/self_directed_401k_public.htm

you can get outside financing…

my thinking was to use the 401 to buy re in stable markets that dont have the boom/bust appreciation cycles of markets like california. in that way, keep the asset value of the portfolio low (lower than say 10% appreciation in ideal s&p) while still generating income via rental…

cash investments would be done through a roth…

[drunkle]

number 4 from:

http://www.nafep.com/onek/self_directed_401k_public.htm

you can get outside financing…

my thinking was to use the 401 to buy re in stable markets that dont have the boom/bust appreciation cycles of markets like california. in that way, keep the asset value of the portfolio low (lower than say 10% appreciation in ideal s&p) while still generating income via rental…

cash investments would be done through a roth…

[drunkle]

number 4 from:

http://www.nafep.com/onek/self_directed_401k_public.htm

you can get outside financing…

my thinking was to use the 401 to buy re in stable markets that dont have the boom/bust appreciation cycles of markets like california. in that way, keep the asset value of the portfolio low (lower than say 10% appreciation in ideal s&p) while still generating income via rental…

cash investments would be done through a roth…

[drunkle]

number 4 from:

http://www.nafep.com/onek/self_directed_401k_public.htm

you can get outside financing…

my thinking was to use the 401 to buy re in stable markets that dont have the boom/bust appreciation cycles of markets like california. in that way, keep the asset value of the portfolio low (lower than say 10% appreciation in ideal s&p) while still generating income via rental…

cash investments would be done through a roth…

[Dougie944]

Mandatory withdrawals out of a 401k start on the year you turn 71.5. I am not sure how that plays out if all your cash was tied up in a piece of real estate. I would guess that you are not immune to this law and you better have some liquid reserves to withdrawal.

In a self directed 401k, I understand that you must be able to purchase the property without additional financing.

With the current housing and looming commercial property problems, I think this would be a horrible investment at the moment.

I don’t see how starting a self directed 401k would affect your tax basis. Am I missing something?

[Dougie944]

Mandatory withdrawals out of a 401k start on the year you turn 71.5. I am not sure how that plays out if all your cash was tied up in a piece of real estate. I would guess that you are not immune to this law and you better have some liquid reserves to withdrawal.

In a self directed 401k, I understand that you must be able to purchase the property without additional financing.

With the current housing and looming commercial property problems, I think this would be a horrible investment at the moment.

I don’t see how starting a self directed 401k would affect your tax basis. Am I missing something?

[Dougie944]

Mandatory withdrawals out of a 401k start on the year you turn 71.5. I am not sure how that plays out if all your cash was tied up in a piece of real estate. I would guess that you are not immune to this law and you better have some liquid reserves to withdrawal.

In a self directed 401k, I understand that you must be able to purchase the property without additional financing.

With the current housing and looming commercial property problems, I think this would be a horrible investment at the moment.

I don’t see how starting a self directed 401k would affect your tax basis. Am I missing something?

[Dougie944]

Mandatory withdrawals out of a 401k start on the year you turn 71.5. I am not sure how that plays out if all your cash was tied up in a piece of real estate. I would guess that you are not immune to this law and you better have some liquid reserves to withdrawal.

In a self directed 401k, I understand that you must be able to purchase the property without additional financing.

With the current housing and looming commercial property problems, I think this would be a horrible investment at the moment.

I don’t see how starting a self directed 401k would affect your tax basis. Am I missing something?

[Author]

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