QUESTION: I recently bought an investment property under my Solo 401k. I am thinking to pay all the repair expenses by my personal credit card. Then, I will pay the credit card bill with a check from my solo 401k. Is this way ok?
ANSWER:It is prohibited to pay solo 401k investment expenses using your personal credit card and then having the solo 401k pay the credit card company.
Instead, solo 401k funds must be used to pay for the investment expenses; therefore, the funds must flow directly from the solo 401k bank account.
Paying Solo 401k Expenses
Solo 401k Land Expenses
Mark Nolan has been active in the 401k and IRA industry for over 18 years. Working as a 401k administrator at Nationwide Insurance Company; then working as a Compliance Officer and Manager at self-directed IRA/401k custodian companies such as Trust Administration Services Corporation (now owned by Equity Trust Company), to IRA Services Trust company. Mark is currently the Compliance Manager at MySolo401k.Net.