Yes, you can use your 401(k) to buy a rental property, but most standard employer plans do not allow you to purchase real estate . To achieve this, you must typically use specialized methods like taking a loan or converting your 401(k) into a self-directed account. 1. Take a 401(k) Participant Loan

: If you lose or leave your job, the full balance may become due immediately. Failure to repay triggers a 10% penalty (if under 59½) and income taxes. 2. Roll Over to a Self-Directed IRA (SDIRA) How to Use 401(k) to Invest in Real Estate - Farther

: There are no immediate taxes or penalties, and the interest you pay goes back into your own retirement account.

If your employer’s plan allows it, you can borrow against your own savings without a credit check.