Please check out this good question from our Daily Live Zoom call. Subscribe to our YouTube Channel to get notifications of our Daily Solo 401k FAQs.
Self-directed Solo 401k: Can I use personal funds as a down payment to purchase Solo 401k real estate?
No – all funds to purchase the real estate must come from the Solo 401k.
Real estate is one of the top reasons that clients are open our solo 401k plan.
In certain situations, clients might be trying to move quickly to buy real estate and one of the good things about our account set up is that help our clients open an account at the bank or brokerage of their choice where they have direct checkbook and/or wire access to the Solo 401k and can move quickly on solo 401k investment opportunities.
Under the Solo 401k real estate investment rules, all of funds invested (including the down payment) must come from the solo 401(k) account. Moreover, the real estate must be titled in the name of the solo 401(k) and then going forward any income or expenses related to that real estate property would flow in and out of the solo 401(k) account.
