Can I transfer private company shares into a self-directed checkbook control Solo 401k

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.


About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>