QUESTION: Does re-financing our primary home loan qualify as a ‘purchase ‘? We are looking to borrow from the Solo 401k so we can pay down our primary mortgage and refinance it.
P.V. in California
ANSWER: Note that a refinancing cannot qualify as a principal residence plan loan. However, a loan from a solo 401k plan used to repay a loan from a third party will qualify as a resident loan. [Treas. Reg. 1.72(p)-1, Q&As 5,6,7,8]