Yes and No!
You see, when your 401(k) plan purchases a property it is owned solely by the plan and you cannot benefit in any way, shape or form from that investment. You cannot live in the property, vacation in that property or in any other way benefit from the plan owning the property. That is the answer to the “no” part of the question.
However, related to the “yes” part of the question, upon reaching retirement age (in most cases, 59 1/2 years or older), the property could be distributed from the plan and you would be taxed on the FMV (Fair Market Value) of the property. You would owe taxes due on this distribution; however, if this is something you wish to do and can afford and justify the tax associated with the distribution, you can do this. It is a great way for a plan to purchase your eventual retirement home.
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