A Solo 401k immediately broadens investing possibilities by permitting investing in any asset that is not disallowed under the IRS regulations. Here are some of the many investment possibilities available with a Self-Directed Solo 401k.
- Residential Property
- Commercial Property
- Developed Land
- Mobile Homes
- Mortgages/Deeds of Trust
- Secured notes
- Unsecured notes
- Car Paper
- Commercial Paper
Tax Liens/Tax Deeds
- Tax Lien
- Tax Deed
- Structured Settlements
- Accounts Receivable
- Foreign Currency Exchange
- Equipment Leasing
- Private Equity
- Precious Metals
- Crowd Funding
Click here to learn about the steps and procedures for buying real estate with your self-directed 401k.
Click here to learn about the steps and procedures for buying promissory notes with your self-directed 401k.
Click here to learn about the steps and procedures for investing in private company with your self-directed 401k.
With Whom Can You Make Solo 401k Investments?
- Your Spouse
- Your natural parents and/or your adoptive parents
- Your natural grandparents
- Your natural children and/or your adopted children
- The spouses of your natural children
- Any fiduciary of your Solo 401k
- Any people providing services to your Solo 401k–such as your stockbroker–as well as his employees and both his and his employees’ blood relatives
- Your Solo 401k trust document provider or administrator
- Your brothers and sisters
- Your Spouse’s brothers and sisters
- Your spouse’s parents
- Your spouse’s grandparents
- Your stepchildren
- Your spouse’s stepchildren
- Your grandparent’s spouse, if not your natural grandparent
- Your aunts, uncles, and cousins
Click here to learn more about prohibited transactions and sample illustrations.
Bitcoin Investment QUESTION:
I have moved funds into the solo 401k bank account. I am considering investing some funds into Bitcoin. Wanted to get you thoughts on it and ask if my plan allows for it?
Yes our solo 401k plan allows for investing in alternative investments such as bitcoin.
We have clients that have established individual accounts at Coinbase and then linked the account to their Solo 401k bank account. Please keep in mind that (i) no non-retirement funds should be deposited into the account; and (ii) if both business partners or spouses are participating in the solo 401k plan, both business partners or spouses need to keep their funds in separate accounts.
Promissory Note QUESTION:
Investment Fund QUESTION:
I am looking at moving funds from my solo 401k 401k checking account in to a investment fund and wondering if there is anything I have to do to document it to make sure I am in compliance.
Yes the solo 4o1k investment rules allow for investing in private companies. This appears to be an equity investment in a private company that has been registered with the SEC. We have created a sample procedure that lists the typical investment documents associated with this type of investment- Click here to view.
Bust Investment QUESTION:
If the solo 401k investment goes bust, how do I record the write off?
There is no “write off” as this investment is done via a Solo 401k where the gains are tax-deferred.