Can I use the solo 401K plan to purchase a property internationally
QUESTION: Can I use the solo 401K plan to purchase a property internationally (e.g. Canada or HK)?
ANSWER: While it is permissible to invest solo 401k funds in foreign real estate, following are some items to first consider.
The country’s rules where the property will be purchased need to be taken into account. Some countries may not allow for a retirement plan to take title to real-estate property. Some may require title taken under an LLC or other entity type. Therefore, make sure to work closely with a real estate expert in that country.
The country cannot be on a U.S watch list.
The real-estate purchase documents must be held on U.S soil by the trustee of the solo 401k trust.
Click on Solo 401k rules to learn more about the solo 401k regulations.
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