ForumsPrivate Company/Private Placements2 members of the Solo401k – Purchasing Private Placement Stock

Forums Solo 401k Private Company/Private Placements 2 members of the Solo401k – Purchasing Private Placement Stock

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  • Eva Rosenberg, EA

    Top SubjectPrivate Company/Private Placements,Solo 401k
    Top ForumsPrivate Company/Private Placements, Solo 401k

    Eva Rosenberg, EA

    Eva Rosenberg, EA

    Top SubjectPrivate Company/Private Placements,Solo 401k

    December 15, 2022 at 2:33 pm

    Hi , we bought stock in a private placement offered through https://www.dealmaker.tech
    using the Tax ID# of our 401K Trust.

    How do we split the shares of stock between the two beneficiaries of the 401k?

    Thank you

    Eva Rosenberg, EA
  • George Blower

    Top SubjectDaily Live Webinar,Solo 401k
    Top ForumsDaily Live Webinar, Solo 401k

    George Blower

    George Blower

    Top SubjectDaily Live Webinar,Solo 401k

    December 16, 2022 at 2:51 am

    If there are multiple participants in the solo 401(k) investing in a particular investment, the investment must be made under the name and employer identification number of the solo 401(k).

    In this case, each participant who invests in the particular investment would transfer funds from that participant solo 401(k) account to the investment provider to make the investment.

    When proceeds of the investment (e.g. stock distributions) are returned to the solo 401(k), it would be acceptable from the solo 401(k) perspective for those proceeds to be deposited into one participants solo 401(k) account and then allocated between each participant’s account based on the ownership percentages (which are based on the original investment amounts of each participant).

    Please note that the fact that multiple participants invested solo 401(k) funds is tracked at the plan level and does not need to be tracked by the investment provider.

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