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What Can You Do With a Solo 401(k) ?

So, what exactly can be done with this structure?
First let’s talk about what the tax code says.
The tax code is exclusive when it comes to 401k’s.
In other words it identifies what they cannot invest in; anything else is allowed.
There are only two types of investments that are disallowed.
Let’s take a look at what they are.
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The Tax Code Prohibits:

Life Insurance

The Employee Retirement Income Security Act (ERISA) places restrictions on a 401(k)’s ability to invest in life insurance.

Collectibles

26 USC 408(m) prohibits 401(k)s from investing in collectibles.

That’s it; end of story. Those are the only two classes of investments that are off-limits to an Solo 401(k). Anything else you can think of that does not involve life insurance or collectibles is allowed. Pretty cool!  With that in mind, let’s go through some of the things you can invest in:

The Tax Code Allows:

  • Rental Real Estate

  • Commercial Real Estate

  • Bare Land

  • Farms & Ranches

  • Flipping Properties

  • Rehabbing Properties

  • Tax Liens

  • Trust Deeds

  • Hard Money Loans

  • Private Placements

  • Offshore Investments

  • Precious Metals

  • FOREX

  • Intellectual Property

  • Accounts Receivable

  • Heavy Equipment

  • Livestock

  • Storage Containers

Check Book IRA, LLC

Redmond OR | Scottsdale AZ | Minneapolis MN

Toll Free:  (800) 482-2760

Some Videos on Solo 401(k) Investments

Check Book IRA

In this video, Steve Sheppherd founder of Check Book IRA explains how you can invest in tax liens with a Solo 401(k) or IRA LLC.  This is impossible with a Custodian controlled Self Directed IRA.  Only with check book control may you take advantage of this bargains

Check Book 401k

If you don’t like the idea of having your retirement metals stored halfway across the country in a depository, then this video is for you.

Retirement Guardians

In this video, Steve Sheppherd, Chairman of Retirement Guardians, explains how in using the Solo 401(k) you eliminate any debt financing that occurs in a regular IRA.  Now you can use leverage when investing without any added burden of hidden UBIT taxation.

363854605One of our clients bought an 18-wheeler to haul oil, and leased it to a trucking firm in North Dakota, taking advantage of the oil boom in that State.

This is a real-life example of the kinds of unique investments you can do with a Solo 401(k).

363854405In this article, we go over the ins and outs of buying rental property with a Solo 401(k) or IRA. We talk about how to collect rent, how to manage the property, how to work with contractors, etc…

Satisfaction Guaranteed

ALWAYS!

Check Book IRA, LLC

Redmond OR | Scottsdale AZ | Minneapolis MN

Toll Free:  (800) 482-2760

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