401(k0 to C Corp
Hello,
I have a question. Do you know if some one could move their 401(k) money since they are no longer with that employer and open up their own 401(k) as a C Corp and then use the funds to purchase property with it?
Hello,
I have a question. Do you know if some one could move their 401(k) money since they are no longer with that employer and open up their own 401(k) as a C Corp and then use the funds to purchase property with it?
Permalink Submitted by Alan Spross on Fri, 2011-03-04 02:03
If they establish a 401k for the C Corp that accepts transfers from other plans, the 401k money from a former employer can be transferred to the new plan. If the existing 401k money is with a current employer, there will be restrictions on in service distributions.
If the funds are transferred to the new plan, the plan document may have limits on investment options and the plan administrator may not be able to handle RE investments. There is particular concerns regarding prohibited transactions with respect to the RE owned. If all these limitations can be addressed, it is possible to do this.