I purchased my in-laws home when my father-in-law died in 2015. I planned to use this home as an investment property for my solo401k. At the time of his death it didn't occur to me to purchase the home in the name of my solo401k trust. The home is secured with a 15 year mortgage in my name. Is there any way at this point to transfer ownership of the home (since I'm unable to sell it to the trust) to my solo401k trust?
ANSWER: While your spouse's parents or siblings are not considered disqualified parties, the fact that you already personally own the property precludes you from selling it to your solo 401(k) plan, as doing so would be considered a sell or exchange between the plan and a disqualified party,with the disqualify party being you. Please see the CLICK HERE for more information on the prohibited transaction rules.