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Self-Directed 401k FAQ: Can I make a personal loan to my Solo 401k for a real estate investment?
QUESTION:
If I want to give my Solo 401k Trust a non-recourse loan to move forward with the real estate purchase, can I do that?
RESPONSE:
The solo 401k trustee/participant/owner is not allowed to loan funds to his or her solo 401k for making investments including real estate. This is because the solo 401k trustee is deemed a disqualified party. However, the solo 401k may obtain a non-recourse loan from a third party. For a sample list of non-recourse lenders, see the following page:https://www.mysolo401k.net/rehab-solo-401k-owned-property-borrowed-funds/
