Solo 401k Roth Conversions of Real Estate Properties
Many Solo 401k plan owners invest in real estate properties as a way to diversify their holdings and earn better returns. Many also choose to diversify their taxes by performing Solo 401k Roth conversions. By doing so, they will be able to convert their pre-tax funds to after-tax. All investments within a Roth Solo 401k account will earn tax-free income.
What if you’d like to convert a Solo 401k property into the Roth account, but do not want to sell the property? Fortunately, in-plan Roth conversions of real estate owned by a Solo 401k is possible. Watch our latest Solo 401k Quick Tip video below to learn more:
Solo 401k Roth Conversions of Real Estate Properties
If your Solo 401k owns a property, and you would like to perform in-plan Solo 401k Roth conversions, you will need to pay tax on the total value of the property. Before processing Roth conversion, the property must be appraised in order to ensure income taxes are paid on the current market value.
Since you already paid taxes on the property, there will be no more taxes on the rental income or any gain from this property at retirement.