Yes a Solo 401k Plan May Invest in Farmland

Just like a solo 401k plan can be invest in family homes, commercial real estate, apartment buildings and rentals, a solo 401k plan may also be invested in farmland provided you open the retirement account with a self-directed solo 401k plan provider.

We have seen an uptick in inquiries for investing solo 401k funds in farmland since 2015.  We suspect this is mostly because global demand for food keeps climbing due to the rising human population which is expected to hit 10 billion by 2050.

Unlike fixer uppers, most investors who invest in farmland (whether via their solo 401k retirement account or personal funds)  buy land and hold it for extended periods of time to get the most return and because the farm economy goes in cycles.

Taking Title

Once you search for and identify the land, perform the due diligence, and decide to invest, the land will need to be titled in the name of the solo 401k plan.

Here is an example: 

John Smith, Trustee of the Chargers Retirement Trust

Flow of the Solo 401k Funds

At time of the land purchase, the funds will need to flow from the solo 401k bank account to the seller. The funds are generally sent via wire.

As far as ongoing expenses, the payment of taxes and insurance will need to be paid using solo 401k funds since the land is owned by the solo 401k plan.  Also, the lease payments and when you sell the land, the proceeds will need to flow back to the solo 401k bank account and will grow on a taxed deferred basis until solo 401k distributions commence (usually at retirement).


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 >>


  • Popular Video

  • ROBS 401k Funding Process

  • Solo 401k Contributions Including Mega

  • Checkbook IRA LLC

  • About MySolo401k

    We help our clients take control of their retirement money. Our products and services provide our clients the freedom to invest their retirement savings in their own business as well as alternative investments such as real estate, private companies, promissory notes, precious metals, tax liens and equities.
    Learn more

    Connect with us

  • We’re here to help.

    Call: 800-489-7571


    8:00 am - 4:00 pm PT

    Why us?