Solo 401k

Self-directed Solo 401k FAQ – Can I bid on an auction of real estate that secures a promissory note in my solo 401k?

July 19, 2022 | By George Blower

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.

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.

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About George Blower

I have the privilege of educating our clients about our products and services so that they can make informed and confident decisions about their financial future. Prior to joining My Solo 401k Financial, I served as the general counsel for a subsidiary of a Fortune 500 financial services company. Learn more about George Blower and My Solo 401k Financial >>

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