Solo 401k Promissory Note Reconveyance / Foreclosed Note

BACKGROUND & QUESTION:

Our solo 401K just foreclosed on a note and
today got back the (fixer upper) property at the Trustee’s Sale, as no
3rd party bidders made a bid at today’s auction.

Can we legally sell this new REO property (owned by the solo 401k) to
ourselves for a penny over the minimum bid amount we set
in today’s auction?

ANSWERS:

Since the solo 401k invested in the promissory note (i.e., it was the lender/beneficiary) secured by real estate,  in the event of default the property would be deeded to the solo 401k plan, resulting in the solo 401k now owning the property,

It would be prohibited for you to buy property owned by your solo 401k plan which would result in a prohibited transaction.

Tags: , , , ,

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 >>

Post a Comment

Your email is never published nor shared. Required fields are marked *

You may use these HTML tags and attributes <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

*
*

MENU