HELOC on a SFH owned in your Solo 401k

[Herve Francois]

Does anyone know if you can take a HELOC on a single family home that you own in your Solo 401k? And if so, who are some good lenders out there that offer this type of HELOC? Thank you!

[Kevin Gray]

@Herve Francois

If you're looking for additional flexibility on funds that are locked up in the Solo 401(K) account, a Roth conversion would allow you to access assets prior to 59.5.  The conversion would require paying income taxes on the funds now (without penalty), but they would then be able to grow tax free and withdrawn tax free.  Could lead to significant savings down the road.   Or for accessing prior to 59.5, any of the assets you pay taxes on during the conversion, you'd then be able to access after 5 years.

I'm not a Solo 401(K) expert, but maybe if you did receive a refi on a property owned outright and had additional funds that were required to stay within the account, this may be a way to get them out and have full access without penalty in 5 years.  Can anyone confirm?