Solo 401k Entity Investment FAQs

QUESTION 1:

Can I Lend After Tax $ (non-qualified) to a business entity if my solo 401k plan is also lending money to it ?

ANSWER:

GENERALLY YES AS LONG THE BORROWING ENTITY IS NOT AN ENTITY THAT YOU OR CERTAIN FAMILY MEMBERS (E.G., PARENTS, SPOUSE OR CHILDREN) WORK FOR OR MANAGE.

QUESTION 2:

Can I Lend After Tax $ (non-qualified) to a business entity if my solo 401k plan is also taken an equity position in it ?

ANSWER:

Generally yes as long as the solo 401k plan owns less than 50% and the ENTITY IS NOT AN ENTITY THAT YOU OR CERTAIN FAMILY MEMBERS (E.G., PARENTS, SPOUSE OR CHILDREN) WORK FOR OR MANAGE.

QUESTION 3:

Can I invest After Post Tax $ (non-qualified) to a business entity if my solo 401K plan is also lending money to it ?

ANSWER:

Generally yes provided the ENTITY IS NOT AN ENTITY THAT YOU OR CERTAIN FAMILY MEMBERS (E.G., PARENTS, SPOUSE OR CHILDREN) WORK FOR OR MANAGE.

QUESTION 4:

Can I invest Equity After Tax $ (non-qualified) to a business entity if self-directed solo 401K plan is also taken an equity position in it ?

ANSWER:

GENERALLY YES AS LONG as THE ENTITY IS NOT AN ENTITY THAT YOU OR CERTAIN FAMILY MEMBERS (E.G., PARENTS, SPOUSE OR CHILDREN) WORK FOR OR MANAGE, and in aggregate, the ownership percentages is less than 50%.

QUESTION 5:

Can I lend funds as a Trustee from a self directed 401k Pre-Tax Qualified plan  to a business entity if no equity investments in same business entity from same SD 401K ?

ANSWER:

Generally yes provided  as THE ENTITY IS NOT AN ENTITY THAT YOU OR CERTAIN FAMILY MEMBERS (E.G., PARENTS, SPOUSE OR CHILDREN) WORK FOR OR MANAGE.

QUESTION 6:

Can I invest equity as a Trustee  from a solo 401k Pre-Tax Qualified plan  to a business entity if same 401K has not lent any  funds ?

ANSWER:

Generally yes provided  as THE ENTITY IS NOT AN ENTITY THAT YOU OR CERTAIN FAMILY MEMBERS (E.G., PARENTS, SPOUSE OR CHILDREN) WORK FOR OR MANAGE.

About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>

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