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Updated about 7 years ago,
Commingling LLC and Solok funds
Hi,
I have an LLC out of which I do some consulting, and I set up a solo 401k using the income from that business, from which I would like to do some real estate investing.
I recently bid successfully on some items in a tax auction. I put as the title holder the trust that holds the 401k assets. However, I did not have funds available in that trust account at the time of the auction, so the deposit went on the LLC credit card.
With me so far? Anyhow, I know there are some restrictions on lending money back and forth between the 401k and myself as an individual. For example I don't think I could buy something on my personal credit card, even an investment asset (eg Bitcoin) and then have the 401k trust pay me back and take possession of that asset. Is it the same between the trust and the LLC? If so, how do I treat the funds that were already spent by the LLC on behalf of the 401k trust?
Hopefully that makes sense. Any info is appreciated.
Thanks