QUESTION 1: Is it possible to rollover a defined benefit plan balance from a former employer into a new solo 401(k) for an entrepreneur’s business?
ANSWER: Yes the rules allow for the transfer of a defined benefit plan (DBP) to a 401k including a solo 401k.
The solo 401k CANNOT be invested in one’s own business; however, it may be invested passively in another individuals company.
If you are looking to invest your DB and/or other retirement funds into your own business, then the ROBS 401k may be the only option.
QUESTION 2: After the rollover, is it possible to take mortgage loans or regular loans from the Solo 401(k)?
ANSWER: Yes the solo 401k and the ROBS 401k allow for 401k participant loans as well as investing in mortgage loans.
Jeff, CPA, CFP in Iowa