Can I use my solo 401k to pay for conference expenses?
QUESTION: I have a Roth solo 401k and regular (pretax) solo 401k plan. I’m wondering if I can use the funds in either plan to pay for real estate related expenses, for example conferences. Or if I’m not able to directly pay from them through the plan then is it possible for me to take out a solo 401k loan and I’d use that money to pay for the industry meetings/conferences?
ANSWER: Unfortunately solo 401k funds cannot be used to pay for conference events. The rule of thumb is to not use the solo 401k funds for educational expenses or travel expenses. The following expense types in connection with real estate may be paid with solo 401k funds.
- Property taxes
- Property Insurance
- Repairs on the property performed by third-parties
- Materials for the property
However, yes you can borrow from the solo 401k plan and then use the borrowed proceeds for any purpose because they will no longer be considered 401k funds.
To learn more about the solo 401k loan rules, click on HERE.
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