A prohibited transaction is a transaction between a Solo 401k and a disqualified person that is prohibited by law. Solo 401k prohibited transactions include the following transactions:
- A transfer of Solo 401k plan income or assets to, or use of them by or for the benefit of, a disqualified person;
- Any act of a fiduciary by which Solo 401k plan income or assets are used for his or her own interest;
- The receipt of consideration by a fiduciary for his or her own account from any party dealing with the Solo 401k plan in a transaction that involves Solo 401k plan income or assets;
- The sale, exchange, or lease of property between a Solo 401k plan and a disqualified person;
- Lending money or extending credit between a Solo 401k plan and a disqualified person; and
- Furnishing of goods, services, or facilities between a Solo 401k plan and disqualified person.
Additional Information
Solo 401k Disqualified Person Defined
Outcome of Engaging in Solo 401k PT
Correcting a Solo 401k Prohibited Transaction
Regulators of the Self-Directed Solo 401k Industry
Reasons Solo 401k Plans are Targets of Fraud