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Purchase of Real Estate in a Qualified Plan


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Guest lthorne11
Posted

I have a profit sharing plan in which the only participant is the owner of the business. He wants to buy his in-laws house with plan assets (they are moving to a retirement home), remodel and sell the house, so basically flip the house. Is this permitted? Does it make a difference if he wants to demolish the house and build a new house to either rent or sell?

Thanks.

Posted

I'm pretty sure that in-laws are disqualified persons making it a prohibited transaction.

Aside from that real estate in a plan gets messy fast.

Searching on "real estate" finds a number of prior threads. These are just a few:

http://benefitslink.com/boards/index.php?showtopic=46911

http://benefitslink.com/boards/index.php?showtopic=46177

http://benefitslink.com/boards/index.php?showtopic=42640

http://benefitslink.com/boards/index.php?showtopic=44251

Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra

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