QUESTIONS:
I have a solo 401k trust and want to know about leveraging my solo 401k funds for equity lines of credit; and reverse mortgages.
Do yo also have recommendations for banks who are familiar with these type of transactions should he proceed with any of the above transactions through one of the options referenced above.
ANSWERS:
The solo 401k rules allow for non-recourse loans to a solo 401k for investing in real estate through the solo 401k. For the non-recourse loan rules, see the following.
https://www.mysolo401k.net/qui
For a list of banks that will loan to a solo 401k plan, see the following.
On another note, the 401(k) regulations do not allow the solo 401(k) owner to use any of his or her solo 401(k) assets for securing a loan to the solo 401k owner. Such a transaction is considered a prohibited transaction. For more information on the prohibited transaction rules, see the following.
