Can I take a heloc out on a property owned by a solo 401k?

[Tyler Hogan]

My father set up a solo 401k in which he owns a paid for duplex. No mortgage. We’re trying to figure out how we can get access to capital that we can use to purchase more real estate outside of the solo 401k without pulling money out of the 401k and paying taxes. Is it possible to get a HELOC on a paid for property that is owned by the solo 401k and then use that HELOC to purchase properties outside of a retirement account?

[George Blower]

@Tyler Hogan

Unfortunately, the rules do not allow for the use of solo 401k owned real estate as security for a personal loan. See the following. 

https://www.irs.gov/retirement-plans/retirement-pl...