Using both self-directed IRA and solo 401k on same property

[Fred F.]

Hello BP Community,

Not a visit goes by where I don't learn something new. I recently completed a rehab on a SFR thru my LLC using a loan from a private lender for the purchase, and funded the remodel using a HELOC on my primary residence.

Since doing some reading here, it appears I can use better options in the future.

I have a question that I haven’t seen posted, so far.

• Can funds from a self-directed IRA AND a solo 401k be used on the same property? i.e., purchase a property using the IRA and remodel using the solo 401k?

After leaving my last job, I set up a self-directed IRA and moved my old 401k to it.

I still have funds in that company’s defined benefits plan that I believe will be best used by moving to a Solo 401k (I understand the rule of being able to use a max of 50% or $50k, whichever is less.  Other than that, I’m still coming up to speed on the solo…much to learn).

Thanks in advance.

[Fred F.]

Brian,

Thanks for the info. Good to know my existing LLC can sponsor a Solo 401k. The single pool of self-directed funds with checkbook control seems to better fit in with my goals.

Justin,

Thanks for your response. As all of you have pointed out, not needing a new LLC for the Solo 401k is a huge takeaway. In past research, I was under the impression it was a requirement to do business with a new Solo 401k, or at least of some benefit. And there is that point about not having to pay the $800 fee for the privilege of starting up and owning an LLC here in CA.

All,

Thanks very much for clearing up the murky waters. Your responses really shortened the path to what I needed to know. My next step is to sit down with my CPA and ask him to back-fill into this discussion. Thanks, and prosperous investing to you.