Solo 401k Non-Recourse Loan from Father’s LLC QUESTION:

January 18, 2023 | By Mark Nolan

QUESTION :

I see that you mention friend, investor, or company specializing in non-recourse loans. I am considering taking a non-recourse loan from an LLC that is in the name of my father.

ANSWER:

While the solo 401k may obtain a non-recourse loan from a bank, hard money lender, or an individual, for example, it would be prohibited for the solo 401k to obtain a non-recourse loan from the solo 401k owner’s parents or from an LLC where the parent’s are members of the LLC. The prohibited transaction and disqualified party rules apply both directly and indirectly.

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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