Updated almost 7 years ago on . Most recent reply
Purchasing rental in 401K
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.
Most Popular Reply
You need to get on the phone with your Solo 401(k) plan provider ASAP to sort this out.
The 401(k) trust must be on title. To purchase in your own name or in the name of a LLC that is the sponsoring employer for your 401(k) would be in violation of IRS rules. Do not under any circumstances do that.
Your assumption that the title company is not knowledgeable is entirely correct.