How to title Solo 401k Real Estate Purchase

3/11/2013

QUESTION: When I use my solo 401k money to purchase real estate, how exactly
does the real estate need to be titled?

Please follow following procedure when investing your solo 401k in real estate.

ANSWER: Basically, the name of you solo 401k must appear on the purchase documents including the deed. Commonly the name of the solo 401k appears and then the solo 401k owner's name or the other way around. Both are acceptable.

You may also use the real estate purchase form located on our forms tab of our website to further document the solo 401k real estate purchase.

Solo 401k Real Estate Purchase Procedure:
http://www.mysolo401k.net/SelfDirected401k.html

Solo 401k Real Estate Purchase Form:
http://www.mysolo401k.net/Free-Solo-401k-Investment-Forms.html

2 Comments

Rick

8/30/2013 07:44:31 am

Is the following senario a permitted solo 401k transaction? Lets say one already owns a rental property and opens a solo 401k account, can one sell the rental property to the solo 401k plan if the solo 401k plan obtains a non-recourse loan to finance the property and 100% of the after expense rents are deposited back into the solo 401k.

Mark Nolan link

10/13/2013 06:51:22 am

Good question. No an asset owned by the solo 401k owner may not be transferred, exchanged or sold to a solo 401k as it would be deemed a prohibited transaction--"Sale and exchange between a plan and a disqualified party". See IRC 475

How to title Solo 401k Real Estate Purchase

Leave a Reply.

Author

Archives

Categories

Solo 401k

ROBS 401k

IRA LLC