Investments

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.​

Real Estate

  • Residential Property
  • Commercial Property
  • Developed Land
  • Foreclosures
  • Rehabs/Flips
  • Mobile Homes
  • REITs

Promissory Notes

  • Mortgages/Deeds of Trust
  • Secured notes
  • Unsecured notes
  • Car Paper
  • Commercial Paper

Tax Liens/Tax Deeds

  • Tax Lien
  • Tax Deed

Others

  • Structured Settlements
  • Factoring
  • Accounts Receivable
  • Foreign Currency Exchange
  • Equipment Leasing
  • Businesses
  • Private Equity
  • Precious Metals
  • Bitcoin

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?


Who’s Out

  • You
  • 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

Who’s In

  • 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?

ANSWER:

Yes our solo 401k plan allows for investing in alternative investments such as bitcoin. Make sure the bitcoin account is titled in the name of the solo 401k trust since solo 401k funds are being used to invest in such investment.

How to title Bitcoin Investment QUESTION:

If I would like to invest with a group, how would I have the bitcoin investment titled?

ANSWER:

Because solo 401k funds are being invested, title needs to be taken in the name of the solo 401k. For example, if the name of your solo 401k is LA Chargers Trust, and your name is Jane Do, title would be taken as follows:

Jane Do, Trustee of LA Chargers Trust

 

Promissory Note QUESTION:

I have a few questions about using my Solo 401k account.
I took a personal loan for 50% of the balance, which is getting paid back monthly.
Now I am looking into using some of the money to invest in a real estate project, either as a JV partner, or as a hard-money lender.  What restrictions, if any, do I have on using that money?  Is there a limit on how much I can use?

ANSWER:

There are no limit restrictions for how much of your solo 401k funds you can invest. You could potentially invest 100% of it if you desire. Restrictions (who you can lend the solo 401k funds) will be covered under the prohibited transaction rules. Please see important information on our links below. 
 

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.

ANSWER:

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.

 

This information is for informational purposes. For information specific to your investment situation, MySolo401k.net recommends consulting with a qualified tax advisor, CPA, financial planner or investment manager. MySolo401k.net is 401k provider; therefore, it does not offer investment or tax advice, nor sell investments.

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