QUESTION: I love your web site. Here is my question. With a Solo 401k I understand the max you can borrow is 50% up to 50K. If I have 120K and borrow 50K as a loan can I use the other 70K to invest in real estate? (much like a Self Directed IRA).
SW in Washington
ANSWER: First, thanks for the website compliment. We work very hard to keep it up-to-date with fresh information and easy to understand language. Yes you are correct in that any proceeds not used in the solo 401k loan process may be invested in real estate similar to a self-directed IRA. In other words, the solo 401k loan rules do not require that liquid funds be left in the solo 401k in the event that the solo 401k loan goes into default