Many investors dream of diversifying their portfolios and building long-term wealth through real estate, but many overlook a powerful tool that could significantly enhance their investment strategy: the 401(k). Specifically, rolling over your traditional 401(k) into a Solo 401(k) can open up opportunities to invest in real estate—tax-free!

The Power of the Solo 401(k)

A Solo 401(k) is designed for self-employed individuals and business owners with no full-time employees, making it an ideal option for many investors. The beauty of this retirement account lies in its flexibility and tax advantages. When you roll over your 401(k) into a Solo 401(k), you gain access to a wider array of investment options, including real estate.

Benefits of Investing in Real Estate with a Solo 401(k)

1. Tax Advantages: One of the most significant advantages is the ability to invest without incurring immediate tax liabilities. Gains on real estate investments held within a Solo 401(k) are tax-deferred, meaning you won’t pay taxes on any profits until you withdraw funds during retirement.

2. Higher Contribution Limits: Solo 401(k)s typically have higher contribution limits compared to IRAs, allowing you to invest more capital in real estate. In 2025, you can contribute up to $66,000 if you are under 50 and $73,500 if you're over 50, empowering you to grow your investment rapidly.

3. Borrowing Power: You can borrow up to 50% of your account balance (up to $50,000) from your Solo 401(k) to finance real estate purchases, providing liquidity and further leveraging your investments.

Conclusion

Leveraging your 401(k) through a Solo 401(k) presents a unique chance to invest in real estate that many overlook. By understanding the advantages and strategies available, you can effectively position yourself for long-term financial growth and security.

Ready to unlock your 401(k)? Join our exclusive webinar on February 27 – homeinvest.com/401k.