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Updated over 10 years ago on . Most recent reply

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6
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  • Boyds, MD
0
Votes |
6
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Legitimate use of Seff Directed 401K

NA NA
  • Boyds, MD
Posted

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.

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