All Forum Posts by: Richard Howell

Doing a private mortgage out of my solo401k for someone's new purchase of their primary residence.  Can I do the mortgage amount higher than the purchase price in order to escrow money for home improvements on the property?  So purchase price $375k, mortgage for $425k to leave $50k for property improvements?

Is anyone aware of any Savings Accounts that pay high yield savings (1.6% or more) that allows you to open the account in your Solo 401k Trust EIN?  

I would like to be able to put my money to work in such an account when it is not in an investment.  Cash sitting in my account only earns 0.2% .

Much appreciated

Thank you both for the feedback!

My Solo 401k has 2 components; a Traditional 401k bucket which is not tax-exempt and then a Roth 401k bucket which is tax-exempt.  However my 401k Trust has only one tax ID EIN.  So if the IRS receives a 1099-INT to my EIN; how would they know it is for the tax exempt portion of the entity?  Or do they just see that the EIN is associated with a 401k plan so they know not to expect an tax return to match up to there database with the associated 1099 filed?

Much appreciated!

If I invest funds from my Roth Solo 401k into a bank savings account that allows me to open the account in the trust's name with the trust EIN, and the bank issues me a 1099-INT at year end, will this 1099 create an issue or confusion with the IRS?  Would I just file this 1099 form in my records and do nothing else?

Thank you very much to all members that took the time to reply to my post.  Very much appreciated.

Thank you both very much for your feedback

Can anyone offer advice or feedback on their experience on how they utilize their Solo 401k to lend money to real estate investors?  I would like to begin doing this with my Solo 401k cash.  Your reply is greatly appreciated.

I would like to start offering private money lending.  What is the best way to find investors in my local market looking for private money lending on their flip deals?  Any feedback is greatly appreciated.