Can a Real Estate Investor Have a Solo 401k?

It depends. In order to contribute to a solo 401k, a person must have earned income.  If someone just owns multiple rental properties then they would not qualify, because rental properties are not considered earned income.

However, profits earned as a flipper or property manager is generally defined as earned income.  Accordingly, this would qualify for contribution to a 401k plan.

We work with real estate clients to structure their operations to try to qualify for a solo 401k.

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Emparion, LLC does not provide legal, investment or tax advice. The information herein is general and educational in nature and should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact financial results. Emparion cannot guarantee that the information herein is accurate, complete, or timely. Emparion makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Please consult an attorney or tax professional regarding your specific situation.