Solo 401 k Investing: Joint investment with an IRA
Solo 401 k investing rules do not prohibit real estate investment and other alternative assets. Traditional custodians and brokerage firms are often the ones to restrict Solo 401k investments to certain investment products. With a truly self directed Solo 401k plan, however, plan owners are allowed to invest in assets of their choice.
Many investors also ask us about funding options for Solo 401 k investing. On one hand, you want to find enough financing to close a deal. On the other hand, Solo 401 k investing needs to be done with caution to avoid prohibited transactions.
If you have funds in a Solo 401k and an IRA and need to pool the money together for an investment, is it legally possible to do so? Watch this Solo 401k Quick Tip video to learn how you can structure a joint investment between a Solo 401k and a self directed IRA.
Solo 401 k Investing: Joint investment with an IRA
Under certain circumstances, you may pull your retirement funds together and acquire one investment property. Let’s use an example of a property valued at $100,000. You would like to use $25,000 from your Solo401k Trust and $75,000 from your IRA custodial account. The ownership percentage will be 25/75. All of the income and expenses must be split according to the ownership percentage. Doing so will allow you to invest money from both accounts into the same property.