Purchasing rental in 401K

[Nathan Waters]

I am under contract for a duplex with a closing in a couple days. Title company contacted me today to tell me that I can't buy the house in my 401k Trust and that I need to do so in my LLC. I gave them all the docs for my self directed 401K. I can't help but think this is on account of inexperience on the title companies part. I am however doing this for the first time so maybe I'm F--king something up. All my houses that I've bought in the past are in my name or the LLC. Any help? I live in Michigan state if that makes a difference.

[Nathan Waters]

@Brian Eastman & @Keri Middaugh

Since posting this, my 401K custodian reached out to me before I even had a chance to call him. He happened to see the thread on BP and called me this morning. So awesome customer service. My point of contact at the title company has been doing this for over 20 years and never encountered this situation. Once I explained that I am not putting it in my LLC and that its not illegal, they pretty much came around. I got them in contact with my 401K custodian. I'll provide updates as they are available. Its pushing the closing by a couple of days which is not a big deal to me. I'm mostly concerned that it is done correctly. For anyone else following, Discount Solo 401K is the company I went with for my self directed 401K. They were pretty responsive from the beginning in answering my questions and I would recommend them. No complaints about their service.