All Forum Posts by: Shawn C.

Mark Nolan

Can 408(b)(2) be interpreted as I can use the plan to fund the unit "if the unit is used to conduct reasonable services or business necessary for the operation or the establishment?"

Also, Can I use the plan to cash purchase properties, then sell them back to my LLC and put the profit back in to the 401(k)?

e.g. Use plan for cash purchase at list price $100K and title the property to solo 401(k) plan. Then, sell/refinance the property for $105K, titled to my LLC and depositing the $105K back to plan?

Legal?  This is my only source of cash but I want to make sure I'm following all IRS rules.

Thanks that makes perfect sense.  It sounded to good to be true.  The same probably applies if i wanted to use the second unit as an office.

Hi BP. I am an full time employee and hold a real estate license on the side. I have one sfr that I'm holding with plenty of equity but it is under long term lease agreement and I don't want to leverage HELOC as I intend to cash out when the lease is up.

I have an old 401(k) that I want to convert to a self employed solo 401k so I can direct the funds in to real estate investments while leveraging debt and evading the UBTI expense that comes with a self directed IRA when leveraging debt.

Can I use Solo 401(k) as source of funds to pay 25% down and leverage debt for remaining principal amount to purchase a duplex that I will owner occupy and rent the other unit? How do I pay the returns back to the 401(k)? Can my LLC hold the deed? Does the 401k hold the deed?

Thank you for your expertise or guidance to find this knowledge.

Shawn C