SD IRA or Solo 401k - Can either loan to self?

[John McAuley]

Hey Everyone,

If I transferred some assets to either a SD IRA or Solo 401k, would I be able to provide a mortgage loan to myself as an investment? In other words, could I go buy rental properties using my own SD IRA or Solo 401k as the bank? If so, which has the advantage? I've read some about buying the properties within both types using mortgages and how the income is treated differently due to some profits coming from your money and some coming from the banks. So I understand that, but just wondering if there are other ways to structure this so that I retain ownership of these properties outside of the retirement account. Thanks for any insight.

John

[Dmitriy Fomichenko]

John, you are considered to be a disqualified person to your IRA and therefore IRA is prohibited from engaging in any business activities with you or any other disqualified person. You CAN NOT do that.