Solo 401k Question

[Brad Z.]

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?

[David Beard]

Brad, can you name a couple of solo 401k custodians that permit borrowing?

Also, you can roll your employer 401k into a solo 401k upon leaving your employer, or can roll it to a more conventional SDIRA, is that correcT, or did I misinterpret. So if I have an outstanding loan with my employer plan, I could roll the 401k AND the loan into a solo 401k, thus side-stepping the immediate repayment requirement upon leaving my employer? I doubt it, but wanted to check to see if there was a loophole.

On solo 401ks, is the self employment income that you can contribute from, limited to whatever you report on schedule SE and pay self employment tax on?