QUESTION:
I have a self-directed solo 401k. I want to buy real estate with it. There is a deal available to me where the property is owned by a Land Trust. I would like to invest the solo 401k in an LLC where the solo 401k is the sole member of the LLC, and then to the Land Trust to take equity in the property. There will be 2 partners in the Land Trust including my solo 401k plan. Do you see any problems with this approach?
ANSWER:
We are not aware of any restrictions surrounding investing a solo 401k funded LLC in a land trust as long as the other investors are not disqualified individuals such as you as the solo 401k owner, your spouse, your parents and your children, for example. See the following for more information. https://www.mysolo401k.net/solo-401k/prohibited-transactions-solo-401k/
