QUESTION:I am thinking of moving out of my home & possibly relocating to Texas. With that, I am thinking of converting my Ohio home into a 'Senior Living' home which I would rent to multiple senior citizens as a multi-unit home (note: none of prohibited persons will reside in it anymore).
Can I transfer the home to my Solo 401K Trust with no monies exchanging hands?
- Is this allowed?
- A title transfer will need to happen?
- Can the trust begin making the mortgage payments?
- Will the loan need to be turned into a 'no-recourse' loan ?
- What other factors play in ?
ANSWER: In short: no.
You can't transfer, sell or in any way move your house into your solo 401k as this would constitute a prohibited transaction. Please note that you can't sell the house to someone else who in turn sells it to your Solo 401k.
Learn more here: https://www.mysolo401k.net/solo-401k/prohibited-transactions-solo-401k/