What types of investments can I make with my Solo 401k?

The law does not permit funds to be invested in collectibles.

If you invest your solo 401k/individual 401k in collectibles, the amount invested is considered distributed in the year invested and, if you are under age 59 1/2, you will  have to pay a 10% additional tax on early distributions.

DISALLOWED INVESTMENTS

Following is a list of collectibles:

• Artwork,
• Antiques,
• Rugs,
• Gems,
• Stamps,
• Metals - with exceptions for certain kinds of bullion,
• Coins - (but there are exceptions for certain coins- for a list),
• Alcoholic beverages, and
• Certain other tangible personal property.

PERMITTED SELF-DIRECTED SOLO 401K INVESTMENTS

While Solo 401k plan providers are permitted to impose additional restrictions on investments, the solo 401k law does not prohibit investing in the following types  of investments.

• Physical Real Estate,
• Promissory Notes,
• Precious Metals,
• Tax Liens,
• Private Entities,
• Annuities,
• Futures, and 
• Life insurance.

Click on SOLO 401K FAQs to learn more about the solo 401k rules.