Solo 401k Prohibited Transactions Defined

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 Fiduciary Defined

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

​Investment Fraud

Targets of Investment Fraud

Reasons Solo 401k Plans are Targets of Fraud

Techniques Used by Fraudsters

Tips for Avoiding Fraud

 

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