Solo 401k

Horse Investing Using a Self-Directed Solo 401k

August 1, 2023 | By Mark Nolan

QUESTION:

While a solo 401k may invest in an LLC, you cannot work for or manage the LLC.

ANSWER:

While a solo 401k may invest in an LLC, you cannot work for or manage the LLC.

What is more, such activity is considered a business so it will trigger unrelated business income tax (UBIT) to the solo 41k at trust tax rates that can be as high as 38%. Please see the following:https://www.mysolo401k.net/ubit-and-udif-differences/

And the following: https://www.mysolo401k.net/solo-401k/private-company-investment/

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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