Permalink Submitted by Alan - IRA critic on Mon, 2015-10-26 23:11
A retirement plan should never be invested in illiquid assets once RMDs begin. You probably should have at least 20% liquid assets in the solo K and that would cover RMDs for around 5 years. While a hassle, you could possibly distribute an x% share in the property out of the solo K, but that may require recording the ownership change with the recorder’s office and also create a situation where the maintence would have to be paid pro rate between the solo K and from taxable accounts sources to avoid prohibited transactions. If you are using a professional plan administrator, you might check with them for suggestions. Of course, sale of the entire investment may also be a consideration.
Permalink Submitted by Alan - IRA critic on Mon, 2015-10-26 23:11
A retirement plan should never be invested in illiquid assets once RMDs begin. You probably should have at least 20% liquid assets in the solo K and that would cover RMDs for around 5 years. While a hassle, you could possibly distribute an x% share in the property out of the solo K, but that may require recording the ownership change with the recorder’s office and also create a situation where the maintence would have to be paid pro rate between the solo K and from taxable accounts sources to avoid prohibited transactions. If you are using a professional plan administrator, you might check with them for suggestions. Of course, sale of the entire investment may also be a consideration.