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Can I take money from my 401(k) account to invest in land?

It depends. If you no longer work for the same company where you were contributing to your 401(k), in most cases; YES and right away! Transferring your 401(k) funds to a Self Directed IRA account is simple and easy. And you have two options to consider: 1. Don’t pay any tax now and open a Traditional IRA. You will pay taxes when you begin withdrawals normally after age 59 ½. Your second option is to pay tax now (on all or part of the funds you’re transferring), and open a Roth IRA. Your profits from land investing in a Roth account will not be taxed In the future! This is a great idea for people who can claim the transferred amount as income on their taxes and pay now versus pay later on the larger amount after years of growth.
Now, if you STILL work for your company where your 401(k) resides, there is a possibility that you can do an in-service, non-hardship withdrawal from your 401(k), 403(b) and 457 plans to a traditional or Roth IRA. This is a great option if you have a large amount of funds in your plan and limited investment choices for diversification.
Speak with your company representative to see if your plan has been customized to allow an in-service withdrawal to an IRA. If you don’t have the option and there is enough support from the employees, the plan can be amended to have this option added.

This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. Please consult with a professional specializing in these areas regarding the applicability of this information to your situation.