Solo 401k Prohibited Transactions
Prohibited transactions are transactions between the Solo 401k Plan and a disqualified person that are prohibited by law. When a disqualified person participates in a prohibited transaction, he or she is required to pay taxes on his or her Solo 401k.
The following transactions are considered Solo 401k Prohibited Transactions:
The following transactions are considered Solo 401k Prohibited 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 he or she deals with the plan income or assets in his or her own interest.
- The receipt of consideration by a fiduciary for his or her own account from any party dealing with the Personal 401k Plan in a transaction that involves Solo 401k plan income or assets.
- Any of the following acts between the plan and a disqualified person.
- Selling, exchanging, or leasing property.
- Lending money or extending credit.
- Furnishing goods, services, or facilities.
Click on Solo 401k Disqualified Person to learn more about prohibited transactions