Forums Solo 401k Real Estate Investments joint investment

  • joint investment

    George Blower replied 1 year, 1 month ago 2 Members · 2 Posts
  • 1 Reply
  • Top SubjectSolo 401k,Real Estate Investments
    Top ForumsSolo 401k, Real Estate Investments

    MARK D.
    Top SubjectSolo 401k,Real Estate Investments

    May 10, 2023 at 10:31 am

    I have a solo 401k with my wife in the same trust. Can we both contribute money to a single real estate syndication together? If we do 50% each on the contribution to the syndication, when we get distributions can we have the ACH in one checking and then split the money 50% into the other checking after receiving them?

    MARK D.
  • George Blower

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

    George Blower

    George Blower

    Top SubjectDaily Live Webinar,Solo 401k

    May 10, 2023 at 5:51 pm

    In short: yes

    When two participants in the same Solo 401k invest their Solo 401k funds in the same investment, it is important to note that the investment is documented in the name of the Solo 401k and under the EIN for the Solo 401k (e.g., So that the K-1 is issued to the Solo 401K).

    Moreover, one or both Solo 401k participants will sign as the trustees of the Solo 401k.

    Even though funds are invested from both of the respective Solo 401k accounts, the investment is structured as one single investment under the name and EIN of the Solo 401k.

    For example, to fund the investment there would be one transfer from one spouse’s solo 401k sub-account to the investment provider and a second transfer from the other’s spouse’s solo 401k sub-account to the investment provider.

    It would be acceptable for administrative ease for all the returns on the investments (e.g. dividends) to flow back to one single sub-account and then the funds are divided between each spouse’s Solo 401k sub-accounts based on the investment percentages.

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