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Tax, SDIRAs & Cost Segregation
Account Closed
  • Rental Property Investor
  • Seattle, WA
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Growing Solo 401K via Note to Trustee?

Account Closed
  • Rental Property Investor
  • Seattle, WA
Posted Sep 24 2018, 12:56
I have a self-directed 401K (solo 401k), and purchasing real estate for buy and hold. However, I would like to grow it by taking after tax dollars (W2) and issuing myself a promissory note of 50K but instead of doing “minimum” payments of prime + 1%, could I artificially increase it to say prime + 5%? Is there a max limit? Also checking with my custodian but wanted to solicit input on whether that would be ”prohibitive”. Thanks for the input.

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