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Updated over 10 years ago,
Legitimate use of Seff Directed 401K
Background: I have a self directed 401k under my consulting company LLC (day job).
Goal: Use SD 401k funds to issue notes.
Scenario: I am a minority owner (<49%) of ABC LLC. ABC LLC is engaged in acquiring, rehab/flipping, wholesaling, holding, etc.
Question: Would I be in violation of ERISA laws, considered conducting a restricted transaction or self dealing, if I were to issue notes to ABC LLC from my SD 401K?
Owner of ABC LLC is not a family member nor in any way affiliated with SD 401k servicing.