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Updated about 5 years ago on . Most recent reply

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Thomas Kwan
  • Investor
  • Sunnyvale, CA
9
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solo 401k partnering and construction loan

Thomas Kwan
  • Investor
  • Sunnyvale, CA
Posted

There is a potential flip project. Can a Solo 401k partner in a LLC that has other non-retirement money/partners to acquire the lot, and get a construction loan? Will the construction loan have to be non-recourse?

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Carl Fischer
  • Rental Property Investor
  • Ambler, PA
1,382
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2,072
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Carl Fischer
  • Rental Property Investor
  • Ambler, PA
Replied

@Thomas Kwan

Yes a solo 401k can partner in an LLC. The loan would have to be non-recourse to the solo 401(k). The 401K would also most likely have to pay unrelated business income tax as well. You should also make sure that there are no prohibited or disqualified persons running or directing the LLC.

  • Carl Fischer
  • [email protected]
  • 215-283-2868
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