Setting up or Paying with Credit Accounts in Solo401k or Self Directed IRA
I need advise from investors who have had their SD Retirement accounts set up for a while. I have one major hurdle that I can't seem to get past.
In our Fix and Flip business (in a non retirement owned LLC) we utilize a big box home improvement store accounts receivable credit account (LAR Account) to order and conduct business. It works awesome for our business (ordering, delivering, etc) and is super efficient.
How can I use this process with my SD Retirement Accounts?
I am worried that by opening up a credit account at that same home improvement store in the name of the solo401k Plan or IRA LLC it would trigger a prohibited transaction. I am right??
I believe I have found my way around this issue for general use credit cards (by simply ordering a debit card linked to the retirement account and using that over the phone etc), but I can't seem to figure the home improvement store issue.
One idea I had is have my brother (and business partner) open up the LAR account at the home improvement store in his name and have the retirement plan pay those invoices when they come?...but that sounds and feels odd even if it would qualify.
Any comments would be appreciated. Thanks!