We study Morita equivalence for idempotent rings with involution. Following the ideas of Rieffel, we define Rieffel contexts, and we also introduce Morita $*$-contexts and enlargements for rings with involution. We prove that two idempotent rings with involution have a joint enlargement if and only if they are connected by a unitary and full Rieffel context. These conditions are also equivalent to having a unitary and surjective Morita $*$-context between those rings. We also examine how the mentioned conditions are connected to the existence of certain equivalence functors between the categories of firm modules over the given rings with involution.

We apply the filtered and graded methods developed in earlier works to find (noncommutative) free group algebras in division rings.

If $L$ is a Lie algebra, we denote by $U(L)$ its universal enveloping algebra. P. M. Cohn constructed a division ring $\mathfrak{D}_{L}$ that contains $U(L)$. We denote by $\mathfrak{D}(L)$ the division subring of $\mathfrak{D}_{L}$ generated by $U(L)$.

Let $k$ be a field of characteristic zero, and let $L$ be a nonabelian Lie $k$-algebra. If either $L$ is residually nilpotent or $U(L)$ is an Ore domain, we show that $\mathfrak{D}(L)$ contains (noncommutative) free group algebras. In those same cases, if $L$ is equipped with an involution, we are able to prove that the free group algebra in $\mathfrak{D}(L)$ can be chosen generated by symmetric elements in most cases.

Let $G$ be a nonabelian residually torsion-free nilpotent group, and let $k(G)$ be the division subring of the Malcev–Neumann series ring generated by the group algebra $k[G]$. If $G$ is equipped with an involution, we show that $k(G)$ contains a (noncommutative) free group algebra generated by symmetric elements.