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Can I lend my Solo 401k funds to a company owned by my Son-in-law?
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1 Reply
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While a Son-in-law is not technically a disqualified person, the child of a Solo 401k owner is a disqualified person so if child lives in a community property state (such that the company is also owned by the child) or if the child later receives ownership of the company (e.g. following divorce, death, etc.), the borrower (i.e. company owned by the child) could later deemed to be a disqualified person. Moreover, such a transaction could draw scrutiny and challenge. For these reasons, you would want to proceed with caution and be sure that the loan was documented and on market/arms’ length terms.
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