SOLO 401K INVESTING IN CANNABIS FARM AND STORE

While the solo 401k rules allow you to invest in other businesses (provided that you do not own, work for, or otherwise have a relationship with this business), this type of investment (e.g., investing a solo 401k in a cannabis farm and/or store) would be subject to UBIT tax if the investment is structured as an equity investment and the entity is taxed as a pass through (e.g. S corp or partnership). See more at the following links:

• (note that there was a recent Wall Street Journal article on this topic - Are There Taxes in Your Tax-Free Retirement Account? The Wall Street Journal Taxpayers should beware that as IRAs and solo 401k plans grow in size, so does the potential for taxes on these accounts if they have investments in alternative assets such as limited partnerships and real estate. Read the full story
• Primer on Prohibited Transactions

To learn more about the solo 401k rules, VISIT HERE.