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Bill aka Lectic writes:

<<Do you know how to spell "prohibited transaction"? I don't think you can have a tax deferred plan funding your living quarters. I have seen some exotic work arounds on this and I think they are all subject to challenge, but perhaps Pixy has a different view.>>

No, I don't hold a different view. While it's not a prohibited transaction per se, the only way to avoid immediate taxation is through a loan from the plan. That has its own disadvantages as I described in my reply to the original poster.

Regards..Pixy
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