Updated 7 months ago on . Most recent reply
Combining Solo 401K funds with Selfdirect IRA funds for an investment
Hi BP Experts,
I currently hold funds in three different self-directed accounts: two self-directed IRAs (my wife's and my own) and a Solo 401(k). I am considering a new RE investment using the combined funds from those accounts, along with personal savings. Would it be considered an illegal transaction if I form a syndication in which all the entities are partners to purchase a new investment property?
Thank you for your answers.
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#1 New Member Introductions Contributor
- Solo 401k Expert
- Anaheim Hills, CA
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#1 New Member Introductions Contributor
- Solo 401k Expert
- Anaheim Hills, CA
It might be possible to take the title as tenants in common (TIC), but since the disqualified person is now involved in the same transaction with the IRA, this would create a possibility of a prohibited transaction, if not now, then in the future (you don't know what you don't know and what might happen). I would not recommend it; there are many ways to invest your retirement funds and keep it clean.