QUESTION:
I would like to know if I can use my solo 401K funds to purchase real estate as my primary residence.
ANSWER:
Good question. No the 401k rules do not allow for using one’s solo 401k funds to purchase their own home. Reason being, the solo 401k owner is considered a disqualified party and thus is prohibited from using real estate owned by the solo 401k plan for personal use.
However, you can borrow from your solo 401k and use the borrowed funds towards the purchase of your primary residence. For example, the solo 401k participant loan rules allow for a 30 year loan payback period if the borrowed funds are used towards the purchase of a primary residence by the solo 401k owner or his or her beneficiaries. To lean more about the primary residence rules, CLICK HERE.
