Can someone please explain in simple terms how money from a 401k can be used to buy investment properties?

like
Posting as :
works at
You are currently posting as works at

You could also take a loan from your 401k and interest is paid to you. Have to be sure you’ll be with the firm for duration of that loan otherwise you’ll have to pay balance upon leaving

like

I agree you could do that, but I would not. Too much can go wrong that could cause immediate payback

I want to buy a multifamily property in the next 2 years. Better to lower 401k contribution limit and save in my own brokerage or to keep it all in 401k in rollover? Thanks!

like

Not sure how you would get the money out of your 401k without tax and penalties. If you want to buy I would think you would slow down 401k contributions and build up funds outside a retirement account.

You need a self directed IRA which you can open yourself through a custodian. Self directed IRA allows you to invest in things normal retirement accounts don't allow for like precious metals, investment properties. This means your investment account would technically own the property and all rent would thereby go to your account. You'd have to research options but I think you can transfer funds from a work account to a self directed.

Good point EY1. I only learned about self directed IRAs after I left a previous employer and explored transferring funds to another account.

like

You can take 100k out of your 401k this year without penalty due to the CARES act

That is assuming you qualify for the 100k withdrawal

Related Posts

Any ideas about the type of “healthcare” roles in Amazon, Best Buy and Walmart? FYI - background is strategy consulting in health.

like

Any reviews about Salesforce role in Intellect Design Arena? How is the work life balance? What are the benefits one get in this company?

like
like

Always been a fan of FIRE and reading about it has definitely helped my finances but I can’t help but wonder if the movement is more about lifestyle change than early retirement.

After you achieve FI,you basically have to maintain the lifestyle that got you there.

What if you want to go on a lavish vacation or buy that flatscreen TV? Are you supposed to do away with material goods entirely? I suppose you could keep working for discretionary $ and live off interest but then you’re not retired.

like

What benefits, perks, and other work life balance things would you like your firm to have in an ideal world?

Hello! Does anyone know of any open positions in your company within the Total Rewards realm? Preferably Benefits Specialist/Analyst roles? My preference is remote but I’m open to hybrid options in Atlanta area as well!

like

Hi tax 🐠,

I have a question for those who prep individual tax returns. My parents claim my grandfather as a dependent on their tax return and due to their low income, receive PTC for the premiums they pay on his insurance (not eligible for medicare). However, would it be advantageous to have him file for his own tax return (he stays with my parents and doesn't have his own proof of residency via bills). If so, can he get PTC if his income is 0?

like

What are the best associate boards to join for healthcare?

like

Hi everyone! It’s my first day out here! Describe your fav benefits of this app to me! Happy hump day & happy hard work!

like

I am 31. I have $750k in assets and 400 in liab. Net worth is 350. Largest assets (excluding real estate) are 120k in 401k, 40k in brokerage, 20k in crypto, 25k cash. Own property totaling $550k (2 condos) but debt of 350k so 200k of my net worth is in real estate. Student loans of 30k. Thread continued 👇🏽

like

new to investing. have done some research - reading blogs and a few books on investing. I still have the question of do individuals that take the index fund route… do you all purchase the same funds for different accounts? Example, would you invest in VTSAX across a brokerage and roth account, or would you take a different approach for each account?

like

What is the health insurance floater amount provided for Manager in capgemini

like

Looking for a position for IAM information Security within Healthcare. Provision, set up access, templates.
SaaS , Sailpoint, Azure . Any ideas ?
Thank you

like
like

What are the benefits of working in KPMG GDC?

like

I received my Sapphire Reserve bonus points March of 2017. Based on the 4 year rule, does that mean I could technically cancel that card now and then apply for a Sapphire Preferred and receive the sign up bonus? Is there a minimum amount of time I need to wait between canceling and signing up for the Preferred?

like

Does Amazon have a Mobile phone cost reimbursement policy?

like

KPMG reached out to me earlier this week and I’m interviewing for a tax position tomorrow morning. JD working on CPA. Working for a regional firm right now making $79k. I like it, but the benefits aren’t great.

Would anyone working in tax at KPMG recommend making the switch? What do your hours look like? Are you satisfied with the benefits?

Going to apply for a credit card. What do you have/wish you had?

like

Best first credit card? I am 21 and only have store credit cards. I love to travel so looking for one that has good rewards.

like

More Posts

If you are a professional designer and give someone your "working file" PSD, but it's just a screenshot of all your mockups on a single rasterized layer, please do us all a favor and change careers.

likefunnyhelpful

What's a good excuse/come back if a company calls you out for exaggerating/embellishing something on your resume?

like

I am a purchaser by profession. Nearly now about 3 years experience. I am earning 45K€/annum. I hold a Masters degree ( Focus : Supply chain management ).

Am i being underpaid ?? A insight by someone would be helpful. I need a serious evaluation.

Thank you for your time !

like

Hi Novartis people, can any body share the revised pay benchmark (cuz of EPIC pledge) for Manager and Senior Manager/Team Lead roles? Is it to start from this year or if it would be enacted in 2023-2024 cycle

like

Have a week in Italy, four days of which I’ll spend in Florence/Tuscany. Give me your recs! I’ve seen a lot on what to do (wine tours, cooking classes) but would love specific names

like

Hi, can you share your thoughts on what is a better option, I have following options
HSBC: X lpa (fixed)
KPMG: X+1
IBM: X+5

Work life balance and career growth are my top priority

like

How much is too much in emergency cash? Roughy $100k held in liquid forms (HYSA, CDs etc.). But wonder is it too much? Expenses are probably $60k for a year. Should that $40k be invested further. Or is $100k a good max?

like

need a desi friendly dermatologist in nyc. any suggestions ?

like

Does anyone know which agencies are still hiring remote Jr Ad positions? This recent grad will highly appreciate it 🥺

like

I somehow managed to step in my own poop just now. I live alone, and do not have pets. Yes, I am potty trained, have a western toilet, and indoor plumbing. And I was barefoot too!

The week is off to a great start!

likefunny

How much hike can you expect from a 4.00 rating at citiustech?

like

which is best to join JP Morgan or Pepsico?

I feel like there's no place for me in the industry because in a 5'6" shy man. I feel like I need to be super charismatic if I want to be taken seriously in any presentation.

like

Pursue manager promotion in core tax compliance or pursue transition to M&A tax but remain SA. I am a Macc CPA.

like

thinking about making the move to Havas, I’ve heard they’re making a lot of changes and restructuring. Trying not to base my decision off of all the rumours. Any thoughts from current employees?

like

Is there a source for any corporate rental car codes? Specifically Hertz

Hello Fishes,
Sorry to ask it here. But could not find any relevant Bowl.
I have been under discussion with UK employer who reached me thru LinkedIn. Offering 66k salary pretax. Offer is from Bristol. I have wife and 2 kids who wil be dependent on me. Do you think it's fair offer for family of 4? Please enlighten what are typical expense range for such family in Uk. Thanks.

like

Put the Moonswatch on a rubber strap today, way better than the Velcro strap it comes with!

Post Photo
like

Anyone who has successfully transitioned from consulting to IB/ PE (deals) can share their story? On what you did to pivot and what you think contributed to a huge part of your success

like

Additional Posts in Personal Investment Chatter

can I put 6k in 2020 roth ira now and 6k in 2021 or am i going to get smacked?

like

New to investing. Looking for any/ all tips... book recommendations, YouTube videos on how to get started

like

Any thoughts on where AMZN will be priced after the Q3 earnings call?

funnylike

Hi all — hands off 🐠 here. My personal brokerage is currently 85% in VTSAX and 15% in VBLTX. Any suggestions on other funds to add in the mix? Was thinking some international exposure but not sure

like

Should be close to breakeven after todays market gains (Invested around 60k during early days of market decline). How many of you are thinking about pulling money out today?

like

A family member is blaming me for them selling their stocks too early since I kept talking about how the market was going up from March and their stock didn’t change lol how should I deal with the situation. I find it childish tbh.

Start tomorrow but I don’t get a match for 401k until 2nd year. Living at home and wanted to pay off my loans. Is it ok if I just do loans, max out IRA, and have an emergency savings? Projected CONTD

Moving to Dallas soon. Does it make sense to buy a condo or house even if I dont think I'll stay there for more than 3 years? I have family there that can help me if I decide to leave and rent this property. Any thoughts? Just dont want to keep paying someone else mortgage. Also want to take advantage of low interest rates.

like

If I’m above the Roth income limit, can I do back door Roth for my Roth IRA and mega back door Roth for my Roth 401k? And does back door Roth count against contribution limit for mega back door?

like

If you were to attend a 1-2hr free financial seminar, what would you want to learn? I'm thinking of hosting a free financial literacy workshop that will actually make a budget and networth statement.

likeuplifting

Thoughts on a high yield savings account (~2.25% interest) vs a money market account (~2.5% interest)?

like

Well. ARKK is back.

likefunny

If you kids are the beneficiaries on my will — can I put one of them as the primary executor as well ? I’m divorced btw

like

I am looking for reliable property managers that help with buying and renting investment properties in the following cities. If you have had a good experience with any, please share.

Boise, Idaho
Atlanta, Georgia
Dallas, Texas
Orlando, Florida

like

What are some ways you guys earn passive income (other than stock market) ?!

like

Anyone bullish on the marijuana market? CGC, aurora etc?

like

Looking to invest in some new stocks. Any recommendations? TIA

like

About to get a payout from a legal settlement ($300k-$500k). How would you invest it or what would you do with this money if you got a payout like this? My goal is to build exponential wealth, but would love everyone’s thoughts even if it has nothing to do with investing! (I’m 25, not married, no kids, have about $240k in student loans, and no savings)

like

Has anyone invested in real estate using Lofty AI or PocketProperties? It seems like a good way to dip my toes into real estate - the minimum amount is $10-50 and I would benefit from receiving rent payments proportional to ownership and appreciation in value.

like

What are you doing with the money you are saving right now?

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Send download link to your phone

OR

Scan your QR code to download
Fishbowl app on your mobile

By continuing you agree to Terms of Use and Privacy Policy.

Messaging rates may apply

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal