Paying Solo 401k real estate owned utility bill

QUESTION: I am the trustee of a self-directed Solo 401k that I set up with you and I would like to know the correct procedure for rent collection and utility accounts for the rental property. Do I need to set up the utility accounts in the trust name, or just make the utility payments with the Solo 401k trust checkbook? On the rent, do I need the rent checks made out to the trust?

ANSWER:  Because the Solo 401k owns the rental property, the real estate purchase documents such as the recorded deed will need to be recorded in the name of the Solo 401k plan. Further, rents, and expenses must flow through the Solo 401k checking account.

Therefore, the rent checks are made payable in the name of the Solo 401k and deposited to the Solo 401k plan bank account.  With respect to the utility accounts, they also need setup in the name of the Solo 401k and paid with Solo 401k funds.  Click the following link from our website to access our investment deposit form for your use in depositing Solo 401k owned rent checks.

And visit our Forms page to view other forms.



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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