Rising House Price Presents Opportunities to Self Directed Solo 401k and IRA Investors

Real Estate 401k: Opportunity to grow retirement funds in real estate

Los Angeles 5/16/2016 11:20 AM GMT (TransWorldNews)

Solo 401k Investment Options: Rental Income and Taxes

According to the National Association of Realtors, home resales increased by 5.1% in March 2016. This exceeded expert’s forecast and signals a strong rebound in the real estate market.

House price is also reported to increase in 9 out of 10 major US cities. The reason for the rising price is the limited housing inventory and the rising demand in these cities. With the housing market warming up, it presents a chance for investors to capitalize on rising equity and demand.

Many investors have always looked at real estate to diversify their portfolio and to earn steady, passive income. What many investors are not aware of is that, aside from investing with taxable money, investors now also have the options to invest in real estate with their retirement funds.

Sense Financial recommends individual investors to research the option of Self Directed IRA and Solo 401k to invest in real estate. Both retirement funds can accept transfers from other qualified retirement plans, such as previous 401k or 403b. Unlike traditional retirement plans, the self-directed plans allow plan owners to invest in almost any legally available investments.

With qualified retirement plans, all investments, including real estate, are tax-deferred. This means, no taxes apply until withdrawal, allowing investments to grow uninterruptedly.

If an investor uses a self-directed Roth IRA or a Roth Solo 401k to purchase a property, the tax benefits can be even higher. Contributions to a Roth account are after tax. However, there will be no taxes on the earnings from the property, including rental payments or profit from reselling.

Plan participant of a Solo 401k plan can also have access to the loan option. This is a large financial advantage, aside from the unlimited investment choices and tax benefits. The Solo 401k loan can be used for any reason and interest is paid back to the plan, instead of a lender. Some Solo 401k plan participants take advantage of this to borrow for a down payment on their house.

Sense Financial is California's leading provider of retirement accounts with "Checkbook Control": the Solo 401k and the Checkbook IRA. Over the years, they have assisted hundreds of clients to obtain checkbook control over their retirement accounts while providing them with the ability to invest in virtually any investment class, including real estate, private lending, mortgage notes and much more without the need for custodian approval.

To learn more about Solo 401k, please visit sensefinancial.com.

vanessa@sensefinancial.com
www.sensefinancial.com

 

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