Solo 401k vs Self Directed IRA for Real Estate

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.
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
If you would like a FREE 45-minute consultation, you can request one here 👉 aba.link/73k
Join us for our FREE upcoming Tax & Asset Protection workshop to better help you meet your goals and secure your future
👉aba.link/qvt
Looking for a book to help you reduce your taxes and find real estate wealth, then you need to check out our FREE eBook, "Un-Tax Yourself"
👉aba.link/mzg
---------------------------------------------------------------------------------------------------------
SUBSCRIBE
www.youtube.co...
~~~~
FINANCIAL PLANNING & RESOURCES
Download your free copy of Un-Tax Yourself eBook and discover the secret to real estate wealth is in the tax deductions. aba.link/mzg
For financial strategies, podcasts, articles and details on upcoming workshops visit aba.link/clintaba
Here’s a little about me and my book Asset Protection for Real Estate Investors
aba.link/clintbio
~~~~
FOLLOW US:
Instagram: aba.link/insta...
Facebook: aba.link/facebook
Twitter: aba.link/twitter
LinkedIn: aba.link/linkedin
~~~~
CONTACT US
Phone: [phone]
Email: [e-mail]
Fax: [phone]
ABOUT CLINT COONS
Clint Coons, Esq. is one of the founding partners of Anderson Law Group, Clint has grown his legal and tax firm to over 400 employees by assisting real estate investors with creating and implementing solid entity structuring plans. His success in these regards is in large part due to his personal investing experience. A successful attorney, real estate investor, and speaker, Clint has used his innovative and dynamic strategies coupled with knowledge borne from experience to help thousands of people save millions of dollars and build real wealth.
---------------------------------------------------------------------------------------------------------
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.

[@ClintCoons]

If you would like a FREE 45-minute consultation, you can request one here 👉 aba.link/73k

[@Seeking_success2]

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

[@stephenmacknik3212]

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

[@ClintCoons]

You're very welcome!

[@transactland195]

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.

[@samsonhollmerus]

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

[@ClintCoons]

Thanks for sharing!

[@JW-po9mb]

This was an awesome presentation. Thank you the information.

[@Kanjicafe]

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

[@wendilevigne4295]

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

[@ClintCoons]

You ar welcome. If you have any other ideas for videos let me know.

[@craigscott7315]

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?

[@Alight_onahill]

Great information, thank you.

[@ClintCoons]

You bet!

[@duracell87]

Thanks for the video

[@donnguyen9315]

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.

[@ConnoisseurOfChrist]

Thanks for breaking this down so simply!

[@lisabarreca]

Thank you for sharing this information. Great info!

[@Skull12o12]

An amazing explanation. Wow, thanks Clint!

[@trereaume3424]

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

[@ClintCoons]

Max out.

[@safdoo]

great video. thanks for sharing

[@et1031ster]

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?

[@perlaargyle9343]

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 )

[@ClintCoons]

It does not but you can take a loan from your 401k to pay for the vehicle.

[@paulrivera3252]

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?

[@pushplayathletics5140]

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

[@davidstalings1226]

This is a great video!

[@sachinanantha2715]

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.

[@ClintCoons]

You can roll into a Solo then convert into the ROTH bucket. The conversion is taxable just like a ROTH IRA conversion. You do not need the money in your ROTH bucket to invest in real estate. You can invest with the Solo in all buckets.

[@MrDj0465]

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

[@expendable4h002]

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

[@gflem]

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

[@ClintCoons]

You need to move it to a self directed IRA or if you have a business you can create a solo 401k

[@LoveConquersAll888]

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

[@perlaargyle9343]

can you purchase a property subject to with a solo 40lk? or only traditional

[@ClintCoons]

Yes you can.

[@perlaargyle9343]

@@ClintCoons awesome! Can you JV purchase a property through a solo 401k if the other party is just a regular LLC?

[@ClintCoons]

@@perlaargyle9343 Yes you can. Just be sure to work with a professional who understands how to set it up the right way.

[@perlaargyle9343]

@@ClintCoons thank you Clint !

[@waltjohnson6138]

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

[@emhchannel2842]

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

[@ClintCoons]

Yes you can own foreign real estate

[@emhchannel2842]

@@ClintCoons Thanks! That's good to know.

[@perlaargyle9343]

I'm buying a house subject to the existing liens but they have leased solar panels that I have to qualify and assume. I have to apply to qualify for the panels under my personal name , is that allowed since I'm buying the house under my solo401k trust? Or would I be violating some regulations in doing this

[@ClintCoons]

Yes you can not personally guarantee the lease or it would be a violation.

[@perlaargyle9343]

@@ClintCoons what about buying it under an agreement for sale where both the solar and deed stay in the seller name with a solo401k. Is that allowed or prohibited ?

[@ClintCoons]

@@perlaargyle9343 Buying the property with a land contract is not prohibited but if you give a personal guarantee then you will have issues.

[@joyallen2415]

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

[@davidhastings2603]

Excellent !!!

[@eeinholz]

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

[@zacharyboyd7648]

In that case you should not Eric. UBIT only applies if you took out a non discourse loan or outside monies to fund the purchase.

[@carlosescolar]

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?

[@debveille6323]

Rolling from one type into the other is / can be done without penalty. Do it properly.

[@myrrhsee1]

Nice video

[@perlaargyle9343]

When you buy an investment home with money from the solo 401k, who is on the deed? your solo 401k?

[@ClintCoons]

The solo 401k

[@perlaargyle9343]

@@ClintCoons thank you do you have a video or thoughts on investing in real estate through a solo 401k vs IUL?? I can’t find anything good online comparing them

[@ClintCoons]

@@perlaargyle9343 Do you mean SDIRA. I don't believe you can invest in re with a IUL.

[@perlaargyle9343]

@@ClintCoons you can take out a loan against the IUL and use the money to invest can't you ?

[@ClintCoons]

@@perlaargyle9343 Yes you can

[@iraadvantage8428]

Wondering how IRA Investing is DIFFERENT than buying something personally? kzbin.info/www/bejne/jXirgX-OfMRqoK8

[@carlosescolar]

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?

[@davidbrunelle7222]

why not ???, what if you only have a roth ?

[@carlosescolar]

David, it is one of those crazy IRS rules. I have been told that it has to do with regular and Roth IRAs having different periods, whatever that means! Now you have to check the new tax code to see if they have changed it. For instance, I have been told that you are not allowed anymore to re-characterize a Roth conversion! It was too good to last! 😁

[@darrickharris5534]

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

[@ClintCoons]

Yes

[@jeffersonfoster4274]

Can I pool my wife's Roth and my Roth IRA into a QRP? Can Roth IRA's be moved into a QRP? a Roth QRP or a Roth Solo 401 K?

[@ClintCoons]

ROTH IRas can not be rolled into a QRP.

[@solarsolicitor9618]

Great video

[@PW060284]

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.

[@zacharyboyd7648]

Clint that is a valid point, but you can always just roll over the Roth 401k portion into a Roth IRA

[@brandblast2023]

Great Video Clint! Useful as always. Got any advice on holding companies? There aren't many videos on the tube about this that actually explain it as in-depth as you.

[@dawnawillis5584]

BrandBlast What did you end up doing with holding company vs management company and did you find a video that explained it? I finished a course last year that basically recommended doing an S Corp to parent your other LLCs and explained the tax benefits

[@weelgunny]

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

[@DinoRexLand]

Audio appears to be lower than average....

[@clemcrawford-el189]

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.)

[@transactland195]

BTW, title says 410k not 401k

[@solarsolicitor9618]

🔥