QUESTION: I want to transfer a gas lease to my SOLO 401k…how would I do that? The lease is five years old. It only has values if they drill on the property. The lease is currently in my name.
ANSWER: While a solo 401k can invest in gas leases, which has been a very popular investment in the last 10 years, because the lease is already in your name, it can't be be transferred to your solo 401k as it would fall under the following prohibited transaction rule.
- Sale, exchange, or leasing of property between a plan and a disqualified person
Visit following links to learn about the prohibited transaction rules.
http://www.mysolo401k.net/self-directed-401k-prohibited-transaction-4975/
http://www.mysolo401k.net/prohibited-transactions-solo-401k/
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