Solo 401k Question
I know this topic has been beat to death but I cant seem to find answers to a few specific questions
1. With a solo 401k, you can borrow up to 50k on a tax deferred basis. Can you borrow this money for flips, keep the profit for yourself (outside of your plan and obviously subject to income tax) assuming you pay back the loan to your plan?
How does this differ from a a Self Directed IRA? I do understand that you don't have a 50k cap if your funding the project in full but it also has to be passive in nature. I would imagine having a custodian in the middle of everything would be a real pain.
Does anybody have a good resource or link that lays out the specifics of SDIRA's vs Solo 401k's?