Farm Income for Setting up a solo 401k

BACKGROUND: I am a male of the age of 60.

I am wanting to set up a solo401k

I have a self- directed IRA with Schwab

I am looking in the area of moving 700K to the solo401k

I currently am employed for a company and have active and contribute to an active 401k- I have not taken any distribution or look to in foreseeable future

I also have Farm Rentals and Active Farm business that I fill out a schedule F on current taxes

I also fill out a Schedule SE and pay self-employment tax.

Where I want to invest

I would like to have check book control 401k

I would like to make personal loans to non- linear descendants for real estate business- these loans do have interest  payment and profitable.

I would also like the ability to buy and operate a few rental houses if I chose.

QUESTION: Is this something I could do through your solo 401k program?

ANSWER: Yes the solo 401k that we offer is self-directed in that you as trustee of the solo 401k plan can direct the plan funds into investments such as real estate, precious metals, trust deeds or promissory notes, tax liens, private placements as well as stocks and mutual funds. The alternative investments can be funded by writing a check from the solo 401k bank account.

With respect to qualifying for a solo 401k plan, as outlined in IRS publication 560, farm income reported on schedule F qualifies for opening a solo 401k plan.

Lastly, as the trustee of the solo 401k, you will be responsible for managing the solo 401k assets including the real estate. With respected to real estate, management functions include looking for tenants, hiring contractors and/or handyman to perform repairs and paying property taxes, to name a few.


Jim in Arkansas

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 >>


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