2007-11-11 04:13:04 · 3 answers · asked by sparent1001 1 in Business & Finance ➔ Taxes ➔ United States
Yes, but it is the worst idea you've ever had.
2007-11-11 04:20:30 · answer #1 · answered by Anonymous · 1⤊ 1⤋
If you meant (without removing the money from the retirement plan) have your retirement plan be invested in real estate that you do not occupy (such as commercial real estate or apartment buildings), then see Wayne Z's answer.
If you mean remove the money from the retirement plan and buy a house, in which you will live, yes, but you will have to pay tax on the distribution and may have to pay a 10% penalty.
If you meant (without removing the money from the retirement plan) have your retirement plan invest in the house that you will occupy, no.
If you mean remove the money from the retirement plan and buy investment real estate (such as commercial real estate or apartment buildings), then yes, but you will have to pay tax on the distribution and will have to pay a 10% penalty.
2007-11-11 08:11:35 · answer #2 · answered by StephenWeinstein 7 · 0⤊ 0⤋
401k - No. If your 401k offers a fund that is a REIT (Real Estate Investment Trust) you can indirectly invest in real estate this way.
IRA - Maybe...but it is rather complex.
Generally speaking, it is a very bad idea to have rental real estate in a retirement plan, though it is possible.
2007-11-11 04:46:07 · answer #3 · answered by Wayne Z 7 · 2⤊ 0⤋