Self Directed IRA working with a Owned Partnership

3 Replies

I am getting ready to roll over a sizable 401k into a self directed IRA to invest in real estate. Three questions:

1) What custodian company is the best if I want to do an IRA, LLC structure with checkbook control? Same question regarding a solo 401k for real estate.

2) Can I partner (as a lender) with my business LLC of which I am a 25% owner (the other three 25% owners are my wife brother and sister in law)? Also a factor to consider is we probably will be converting our company LLC to a S Corp by year end (and I will be a 50% owner along with my brother).

3) Can our company open a solo 401k for 2 of the 4 owners for our current LLC (or 2 of 2 owners post S Corp conversion)? My understanding is that a solo 401k is only for single member companies and not for partnership structures.


I can't comment question #1 because if self promotion rules.

#2 - You can partner your IRA/solo k with any person/entity but it's important that your plan funds to operate separately (side-by-side). For example, don't lend to your LLC. Instead, lend as a separate but affiliated party. That way there are never any disqualified persons issues that come up later.

#3 - solo(k) plans are really designed for individuals. Spouses are exempt under plan provisions but if you're going to have multiple people it gets difficult.