All Forum Posts by: NA NA

Can anyone recommend a good source for ,cabinets other than the big box stores (Home Depot / Lowes), in the Washington DC metro area?

Can an SD 401K be used to establish an LLC with another non-disqualified individual? LLC would be funded say 40/60 for example purposes, between 401K trust and non-disqualified individual. Apportioned income, gains or losses from the business operation would be allocated to the 401K trust. I would be 100% passive in all activity of the LLC. No leverage would be used.

I've read "The purchase of a business operated via an LLC or partnership will POTENTIALLY trigger the Unrelated Business Taxable Income rules under IRC 512 and a corresponding tax of approximately 35% would be applied"

What I cannot find are the actions or measures one should take to eliminate or avoid the potential trigger?

Thanks

@Steven Hamilton II

Alternate Scenario: I am not an owner ABC LLC. ABC LLC is engaged in acquiring, rehab/flipping, wholesaling, holding, etc.

Question: Would I be in violation of ERISA laws, considered conducting a restricted transaction or self dealing, if I were to issue notes to ABC LLC from my SD 401K (all proceeds back to SD 401K) on projects where I had no involvement. But on other projects, partner with ABC LLC where I have direct involvement and am using my personal funds?

Did I perhaps ask the question the wrong way? Is there an organizational structured way or known strategy around this? Not talking about ROBS.

Thanks for all the quick responses.

Background: I have a self directed 401k under my consulting company LLC (day job).

Goal: Use SD 401k funds to issue notes.

Scenario: I am a minority owner (<49%) of ABC LLC. ABC LLC is engaged in acquiring, rehab/flipping, wholesaling, holding, etc.

Question: Would I be in violation of ERISA laws, considered conducting a restricted transaction or self dealing, if I were to issue notes to ABC LLC from my SD 401K?

Owner of ABC LLC is not a family member nor in any way affiliated with SD 401k servicing.