QUESTION: My last question and maybe this would work for me. My friend has property which is owned by a corporation. Can I use the solo 401k plan to invest in developing the property into 5 condo units? In other words, could I buy shares of his corporation or is there another way to do this?
Thank you Mark.
ANSWER: Yes the solo 401k investment rules permit investments in private company shares. Under this arrangement, the solo 401k would essentially become a shareholder in your friend’s corporation that will engage in developing property, which means title to the investment would be taken in the name of the solo 401k.
Please click here to read a procedure for investing in a solo 401k in private company shares.