Hello,
Does anyone invest in real estate from their 401K?
I will be contacting my Tax attorney before I take any steps...
Any thoughts are welcome!

Thank You
Ritu

Hello
The above is in relation to investing in Real Estate.

Thank You
Ritu

Ritu,

You might want to research what's called "Self-Directed" plans for 401k, and even with a Self-Directed IRA. Do some research on the internet and see what you can find. I've provided a couple of links that can help you get started:

http://accounting.smartpros.com/x31218.xml

http://www.entrustadmin.com/self-directed-IRA.html

When I started investing, I took out a loan for my 401k. A lot of people don't recommend this because it takes away your investment power and you also have to pay it all back immediately upon your termination or leaving your employer. The upside is that you pay yourself back interest and the loan is deducted pre-tax from my paychecks. Each plan may be different, so just check with the 401k administrator.

I think my 401k loan really helped me get started in investing, but I'd avoid it and use it as a sort of last-ditch effort.

What you are looking for is a Self Directed Roth IRA. If you purchase a property with the IRA and then sell all the profit is tax deferred. Makes a nice increase in addition to you doinga max yearly contribution.

Paul is correct. It also depends upon what kind of real estate you're investing in and how accept returns. Most of my referrals come from CPA's and Financial Planners for their clients retirement plans. I had a Financial Planner with more than $180 million of client retirement money to invest, call me today.

Your CPA or Certified Financial Planner should be able to advise you on this.

Storm