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Self-directed 401k – Can my Solo 401k make crowdfunded REIT investments (Fundrise, Realty Mogul, etc)?
Could a self-directed solo 401(k) invest in Fundrise, Realty Mogul, and other crowdfunded REIT investments?
RESPONSE:
With our solo 401(k) plan, the solo 401k owner/participant can invest in alternative investments, including crowdfunded REIT investments.
With regards to the mechanics of making such investments, the investment must be made under the name and EIN of the Solo 401k.
Based on experience and client feedback with respect to crowdfunded investing platforms, one must have an account on the platform. In that case, one would need to have an account under the name and EIN of the Solo 401k. Moreover, separate sub-accounts if for example different solo 401k participants or different types of funds (pre-tax and Roth Solo 401k) will be invested.
The crowdfunded REIT investment account would then be funded by transferring funds from a Solo 401k bank or brokerage account. If the funds, must be deposited via ACH the funds will then need to be transferred from a Solo 401k bank account (since the brokerage firms that open accounts for third-party self-directed solo 401k plans don’t allow for external ACH transfers out of the brokerage accounts).
