Real Estate Investments

[Guest jetfaninmn]

Can a 401(k) Plan - one life plan (only employee) invest 100% in real estate?

My vanilla world of equities and mutual funds restrict my knowledge at times!!!

Thanks

[BeckyMiller]

Potentially - you need to look at liquidity needs, potential unrelated business income tax if it is debt-financed property or leased property, prohibited transaction implications, etc. Lots of technical stuff. Obviously, diversification is generally a good idea, but with one person plans - presumably the owner - the plan's portfolio has to be examined in light of the owner / participant's aggregated investment portfolio.

[masteff]

In addition to the items listed in the post above, try #1 at this link: http://www.irs.gov/retirement/article/0,,id=163722,00.html