Rehabber · Harrisburg, NC · Member since 2012 · 7 posts · 0 votes
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.
Thanks!
Investor · North Idaho · Member since 2011 · 332 posts · 107 votes
12y
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.
@Brandon Powell , I would be glad to discuss your situation over the phone, the complexity of your questions are beyond the scope of this forum. Feel free to PM me.