Rollover Your 401k to Real Estate – When and Why

Corporate Qualified plan rollover to real property.If you have a corporate retirement plan, there might come a point in time where you need to roll it over into an Individual Retirement Account. This will important to do as the last thing you want is your retirement funds not working hard for your retirement. So, in order to understand the need for a rollover you should answer two specific questions in regards to a company savings plan rollover: when and why?

When To Rollover?

In most instances, a rollover is one that you will execute because you are leaving one job for another. Because 401Ks are employer sponsored, it is necessary to move 401Ks once you stop working for a specific employer. Without rolling over your 4retirement savings, your money will simply sit dormant and not do much of anything. By rolling it over into an IRA, you will have easy access to it and be able to ensure it is being managed to your liking and that the money is still being put to work to benefit your retirement plan.

Why Consider Rolling Over To Property Investments?

Though ending employment is the most common need for a Company rollover, a big reason as to why you might want to execute a rollover will be control. 401ks are much the same as standard IRAs and ROTHs in that there are certain restrictions when it comes to investing. For example, within your 401K you are not allowed to invest in physical gold or real estate. So, in many ways, you are limited in your choices.

However, rolling over to a real estate IRA will allow you the flexibility you might desire when it comes to investment choices. These types of specialized IRAs do allow for purchases of physical precious metals, physical properties, and much more. So if total control is your desire, you might then consider a 401K rollover.

Look at the Circumstance

If you are changing jobs, then it is perfectly acceptable to do a corporate, qualified plan  rollover to real property. However, if you are still employed and simply want to do this with your 401K, you may need permission. So, you will have to check with the HR department where you are employed and see if this type of rollover is allowed while you are still an employee. If it is, then you can execute an approved rollover into a special type of flexible account that will allow you to investing not only in real estate, but also in a wider set of investment options. In the end, it all comes down to the right time and reason for you.

Learn more about 401Ks rollovers and their various rules, some that may surprise you.

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