Solo 401(k) funded by LLCs

[Ali L.]

Hello. Has anyone created a Solo 401(k) to invest excess real estate income, primarily for investment? I am wondering about tax implications, as real estate income is usually considered passive. In addition, LLCs are generally negative EBITDA. 

[Ashish Acharya]

Originally posted by @Ali L.:

Hello. Has anyone created a Solo 401(k) to invest excess real estate income, primarily for investment? I am wondering about tax implications, as real estate income is usually considered passive. In addition, LLCs are generally negative EBITDA. 

The main question is: do you have earned, qualified income to fund the Solo 401k? You cannot fund Solo 401k with passive rental real estate income.