Understanding rules for 401k and entities - multiple funds?

[Brady Miller]

Hi - I'm trying to wrap my head around the relationships and rules about a potential solo 401k through my full time job (non-real estate: Business A) and a future real estate investment business, specifically notes (Business B). I have not formed a real estate entity yet.

I am self-employed at Business A and do not have any employees except myself. 

I have a Roth IRA (not self-directed yet), and no other retirement accounts yet.

If I form a solo 401k through company A, can I provide all funding for Company B investments? Do I need a particular entity type for business B to receive this kind of funding transaction?

Also, say I purchase a note in company B - can I fund part of the purchase price through the solo 401k and part of the actual note purchase through a SD roth IRA?

Could I fund 100% of the purchase price of the note within the solo 401k and then things like servicing, legal fees, etc through the SD Roth IRA?

Lastly - I believe I understand the rules regarding dispersal, but want to make sure: let's say I acquire a property (not a note this time). Is there any way above-board to enjoy personal use before age 59.5? Paying taxes and penalties etc? Or is it simply locked away in the plan until age 59.5? I am absolutely not interested in trying to fudge, but curious about use rules in this case.

I understand that ultimately, i will be hiring a CPA and lawyer before moving forward, but your input is helpful for my understanding, thank you!

[Dmitriy Fomichenko]

Brady, you need to understand the prohibited transaction rules and that you are considered to be a Disqualified Person to your 401k. IRS rules prohibit any transactions between the plan and disqualified person or any business it owns. Here is a link to the IRS website which will give you some details:

https://www.irs.gov/retirement-plans/plan-particip...

Retirement accounts are designed not to give you benefits now, but rather for your future benefits. You can not use the property while it is owned by the retirement account, the only way for you to enjoy the property is to remove it from the 401k by taking in-kind distribution.