Solo 401(k) Question

[Dawn Anastasi]

If you use your Solo 401(k) to purchase real estate, I understand that there are certain prohibitions on it, such as all income must go back into the property.

As far as hiring people to work on the property, from what I read there are disqualified persons and non-disqualified persons.

A "friend" is listed as a non-disqualified person. A "spouse" is a disqualified person. What about a significant other?

[Steven Hamilton II]

Originally posted by @Dawn Anastasi:

If you use your Solo 401(k) to purchase real estate, I understand that there are certain prohibitions on it, such as all income must go back into the property.

As far as hiring people to work on the property, from what I read there are disqualified persons and non-disqualified persons.

A "friend" is listed as a non-disqualified person. A "spouse" is a disqualified person. What about a significant other?

Dawn,

A significant other as long as not married to or part of your direct lineage is just fine. Cannot be related.

All of the income much go back into the 401k.

Just don't hire family.(to make it simple)