Solo 401k vs Self Directed IRA for Real Estate

by | Dec 10, 2022 | SEP IRA | 41 comments




In this video, real estate asset protection attorney Clint Coons covers the differences between using a Solo 401k or a Self Directed IRA for real estate investing. If you would like a FREE 45-minute consultation. you can request one here:

States that do not provide IRA Creditor protections
California – Partly for regular IRA and no protection for ROTH IRAs
Maine – Partly for regular IRA and no protection for ROTH IRAs
Mississippi – No protection for ROTH IRAs
Montana – No protection for ROTH IRAs
Nebraska – Partly for regular IRA and no protection for ROTH IRAs
West Virginia – No protection for ROTH IRAs
Wyoming – Partly for regular IRA and ROTH IRAs

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The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice….(read more)

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41 Comments

  1. Craig Scott

    How does deductibility compare between a solo 401k and a SDIRA? Are there limits on deductibility for high income people, and if so, can you contribute in excess of those limits?

  2. Perla Argyle

    Does buying a vehicle for your business count as a "approved" expense in a solo 401k? As far as a withdrawal goes (assuming you do still plan to pay it back in 60 months )

  3. Tre Reaume

    SO GOOD! On the Solo 401k is 50k the max money out at any one time OR 50k per event/unique transaction?

  4. Sachin Anantha

    Hello Clint, another classic video. Can we convert or rollover a Solo 401k where all employee contributions and employer deferrals are held in traditional bucket to a Self directed 401k as part of the Roth bucket? Does this trigger a penalty or taxable event? Also, do we need money to be in Solo 401k Roth bucket to use it for real estate investing or the money in Solo 401k traditional bucket can be used for real estate investing. Thanks for your feedback.

  5. Samson Hollmerus

    Fantastic video Clint.
    Subscribed, liked and now commented to spread awareness to this video.
    I've also shared it with some friends.
    Well done!

  6. Stephen Macknik

    This is an outstanding and clear video explanation of a complicated topic. Thank you. Truly, I’m really very grateful.

  7. Sam Lewis

    An amazing explanation. Wow, thanks Clint!

  8. Wendi LeVigne

    THANK you- you really spoke to exactly where I was in the decision process and helped inform. Excellent overview- thank you for producing.

  9. EMH Channel

    Thanks for the presentation, Clint. Can I use the funds in a solo 401(k) to purchase property in another country?

  10. Hollysbuddy

    I have a Vanguard Roth IRa. wHAT DO i have to convert this to to buy real estate that is leveraged?

  11. JW

    This was an awesome presentation. Thank you the information.

  12. Darrick Harris

    What about a SEP IRA you can contribute up to $56,000?

  13. safdoo

    great video. thanks for sharing

  14. Ethan Eady

    Nice video

  15. Lisa Michaels

    Thank you for sharing this information. Great info!

  16. weelgunny

    Problem with solo or any 401K? No metals. Just stocks. Good luck…

  17. Push Play Athletics

    I am retiring from federal service where I have a TSP. I will be self employed and would like to set up a solo 401K for the flexibility in real estate investing. I will have 350K in my tsp and would like to know if I can roll that sum or a portion of the sum into the Solo 401K. I will be doing some real estate investment and I am looking forward to the flexibility of the Solo 401

  18. David Stalings

    This is a great video!

  19. Rob Nappi

    This is great! Thanks! I just found out about solo 401k plans.

  20. FeloniusMonk

    Clint – you did not cover RMDs.

    IRA (Roth only) – no RMDs
    401k (Trad and Roth) – RMD rules apply

    This makes Roth IRA a great tool for intergenerational wealth transfer. an often understated advantage.

  21. Carlos Escolar

    I have been converting my regular IRA to Roth slowly to try to pay less taxes when I have to start paying RMDs. So can I convert $53k into a Roth and then put $53k from another source into the Solo 401k, all tax free?

  22. Carlos Escolar

    Thank you, thank you, thank you Clint! This is a fantastic explanation! You say you can mix IRAs from two people into a Solo 401k. But if one is over 59 and the other one is not, can they take all the money out without penalties?

  23. Joy Allen

    Hi, can the solo 401k IRA be A solo 401 k Roth IRA?

  24. COLDASALASKA ONAHOE

    Listen genius you're deceiving people because you purposely left out the LLC portion of the self directed IRA.

  25. Transact Land

    BTW, title says 410k not 401k

  26. Transact Land

    Thank you very much for this video. I've been in a rut lately trying to figure out if I'd be doing the 401k or IRA and this will helps to figure it out.

  27. DERRICK JAMES

    Ok, didn't go into detail about buying tax liens in a SDIRA. NEED MORE INFORMATION! !!!

  28. Paul Rivera

    So, I am getting out of this is there is no such thing as a "No custodian SDIRA" or is the Solo 401K the NC/SDIRA?

  29. et

    Very informational, Clint! If I have the option to do an in-plan Roth conversion, should I do that first? And then bring it out as Roth via other options for investments?

  30. Eric Einholz

    When "flipping" a house in an IRA (or SoloK) will you owe UBIT ? (no sweat Equity involved, all expenses paid from IRA).

  31. Love

    Ty soooo much. Your information is very helpful. Now i have an llc established with a bank acct. How do i go about doimg the 401k solo? I also have a 401k with my employer

  32. 野薔薇神武

    Clint I thought Solo didn't have ERISA protections unless you had one employee that wasn't a spouse?

  33. Walt Johnson

    Small correction: IRS Tax Form for UBIT from UDFI is form 990-T, not 1099-T

  34. Don Nguyen

    If the solo 401k has 200k. It bought a rental property for 100k but the house need 30k in rehab. Can we use the solo 401k remaining 100k to do the rehab? Very interested.

  35. Clem Crawford-El

    I need some clarity on the relationship between a Solo 401k and a LLC. Is the Solo 401k the parent of the LLC or is it the other way around? My initial assumption was that the LLC operates under the solo 401k. In this case, I was concerned that the income earned by the LLC counted against the $53K contribution limit (assuming income exceeded $53K annually.)

  36. Expendable4 H00

    Clinton, can you have multiple trustees in the solo401k? If the business has multiple members in the LLC.

  37. Joe N

    Thanks for breaking this down so simply!

  38. Manny

    Audio appears to be lower than average….

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