Invest solo 401k in Diamond Gems

QUESTION: Can the solo 401k plan invest into purchasing diamonds ? I am talking about individual diamonds (solitaires). This is purely from investment decision making perspective?

ANSWER: 

Because diamonds fall under the Gems category, the IRS regulations do not allow for the investment of retirement funds including solo 401k plans and IRAs in diamonds.

Following are examples of other disallowed 401k plan and IRA investments.

1. Artwork,
2. Rugs,
3. Antiques,
4. Metals - with exceptions for certain kinds of bullion,
5. Gems,
6. Stamps,
7. Coins - (but there are exceptions for certain coins),
8. Alcoholic beverages, and
9. Certain other tangible personal property.

Click on LEARN to read more about the solo 401k regulations.