Invest a solo 401k in a Special Purpose Vehicle/Entity (SPV)

QUESTION:

I have a quick question. I have set up Solo 401K account  I plan to make new investment in SPV feeder fund. Do you know if SPV Feeder Fund investment allowed under the Solo 401k?

ANSWER:

Investing in  Special Purpose Vehicle/Entity (“SPV”)  is essentially a private investment. The SVP is commonly used in the hedge fund investing world to pool investors funds in  a “master fund.” Another benefit of the SVP is to save on investment fees and to take advantage of economies of scale.
Yes the solo 401k rules allow for investing private investments provided:
  • You are not an officer, director or employee of the fund directly or indirectly.
  • Also, your spouse, children, parents, etc. are not employees, officers, directors of the fund directly or indirectly.
  • None of the above including your solo 401k own 50% or more of the fund directly or indirectly.
  • The investment is titled in the  name of the solo 401k, using the solo 401k EIN for reporting purposes.

Tags: , , , ,

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 >>

Post a Comment

Your email is never published nor shared. Required fields are marked *

You may use these HTML tags and attributes <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

*
*

  •  

  • Popular Video

  • ROBS 401k Funding Process

  • Solo 401k Contributions Including Mega

  • Checkbook IRA LLC

  • About MySolo401k

    We help our clients take control of their retirement money. Our products and services provide our clients the freedom to invest their retirement savings in their own business as well as alternative investments such as real estate, private companies, promissory notes, precious metals, tax liens and equities.
    Learn more

    Connect with us

  • We’re here to help.

    Call: 800-489-7571

    Monday-Friday

    8:00 am - 4:00 pm PT

    Why us?
MENU