QUESTION: If I have already shares of a private company that I own less than 50% of its outstanding shares, issued in both my company’s name and personally, can that be transferred into a self-directed checkbook control Solo 401k?
ANSWER: No you cannot transfer shares of a company that you already own to a solo 401k plan as it would run afoul with the prohibited transaction rules, specifically the following:
The sale, exchange, or lease of property between a Solo 401k plan and a disqualified person.
Click here for more information on solo prohibited transactions.
