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QUESTION: My Solo 401k owns a note secured by real estate. The real estate is being sold at auction – Can I personally bid on the property?
The ability to invest Solo 401k funds in promissory notes and other alternative investments is one of the popular use cases for our Self-directed Solo 401k plan.
Such a promissory note may be secured by real estate.
In the event that such real estate is sold at auction, the solo 401k owner cannot personally bid on the property – doing so is prohibited from a Solo 401k perspective.
Please note that bias rules at the auction may also prohibit your participation.