Wife & Husband in the same SOLO401K Account?

[Daniel Dietz]

Hello all, 

We are getting ever closer to our purchase of 12 units from a retiring friend of ours and getting pretty excited! One of the areas we are still working on is in HOW we want to hold them - some with conventional loans, some in SDIRA/SOLO 401K Accounts etc... 

I am going to be calling a couple of you Pros on here in the Self Directed Field this next week to decide on a provide but thought these questions might help other readers also.

The three main remaining questions come down to this;

1) Can a wife & husband who are both owners in the same LLC business, but only one of them takes an income from it (in the form of a K-1) BOTH contribute into the SAME Solo401K account? I thought I read where this is possible, but am having trouble finding it. The thought is to combine funds to be able to purchase a more expensive property. My understanding is that existing Traditional IRAs can be rolled into a Solo401k, but existing ROTHs are NOT allowed to be rolled into a Solo401K. As a side note, once Traditional IRAs are rolled over, THEN they can be converted into a 'Sub Account' of ROTH IRA, with the taxes being due of course. Does this seem correct?

2) I currently have a ROTH SDIRA account that owns 1/3 of an LLC that holds properties for rent. I would like to simplify things now that I know about Solo401Ks but cant roll that ROTH into one. Is there any way that I can "sell that 1/3 ownership" to myself by buying if WITH my Traditional IRA Funds - in essence switching out my ROTH finds with Traditional IRA funds?

3) It # 2 is not possible, as the LLC goes forward buying more properties, can "my 1/3 slice of the pie" be a combination of both my ROTH funds for the existing properties and a newly formed Solo401k for the yet to be bought properties?

Thanks, Dan Dietz