QUESTION: My wife and I opened up 401 K solos and we want to invest in real estate using these. I am considering purchasing an office condo for my law firm - can you explain how the mechanics of such a purchase using the 401K solo would work?
ANSWER: While it is generally prohibited to invest the solo 401k assets in real-estate that the solo 401k owner/trustee uses for his or her personal or business use, since your law firm is the self-employed business sponsoring the self-directed Solo 401k, you may qualify for the following prohibited transaction exemption, which is outlined in the following blog post.
After you read this information, you can call me directly at 800-489-7571 option 1 to further discuss.
Tom in Virginia