Personal/Solo LLC Taxation - Borrowing from Self-Directed 401(k)

[Jon Binder]

Hello,

I must begin by saying.....WOW! What a community here on BP! I stumbled onto this site from a Google search for a question that I had and was instantly hooked! So, thank you all for the education thus far.

My question involves taxation. I recently registered a single member LLC (JBE) centered around flipping houses. I have personally funded this LLC some already as owner's equity. The dilemma that I am facing is that I have roughly $70,000 in a 401K sponsored by my former employer. I am 100% vested. I plan on transferring this account into a self-directed 401(k) and register it as a LLC (I am aware that this is not required). So....... if I personally borrow $35k of my available $70k (50% rule), can I turn around and fund JBE with borrowed k money and account it as owner's equity even though it is technically a personal liability? In addition, can I write a monthly check from JBE to myself (deposit into my personal checking account) and in turn write a personal check to the 401k LLC to pay the monthly payment?

Jon