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Forums Solo 401k Real Estate Investments Managing Properties Within Solo401k


  • Managing Properties Within Solo401k

    Mark Nolan replied 2 years, 9 months ago 2 Members · 4 Posts
  • 3 Replies
  • Roberta E.

    Top SubjectSolo 401k,Mega Backdoor Roth Solo 401k
    Top ForumsSolo 401k, Mega Backdoor Roth Solo 401k

    Roberta E.

    Roberta E.

    Top SubjectSolo 401k,Mega Backdoor Roth Solo 401k

    September 21, 2021 at 1:10 pm

    Hi everyone,

    Hope you are having a fabulous day!

    How far do we have to step away from managing or having any managing vendors with properties within our Solo401K?

    I have a current business that has processes, systems, vendors, paperwork, email communications etc for all of our real estate held outside the Solo401K.

    We are now purchasing homes inside the Solo401K, they will follow the same exact business model (lease option/rent to own) that the outside follow.

    Can I use the same vendor, paperwork, email communciation accounts for the houses in the solo401k as outside the Solo401k?

    Or should I open all new vendor, communications, insurance, paperwork accounts to service just the Solo401k houses?

    I know to name a person that is not related to me, as “property manager” of these houses

    Thank you



  • Mark Nolan

    Top SubjectSolo 401k,Solo 401k Contributions
    Top ForumsSolo 401k, Solo 401k Contributions

    Mark Nolan

    Mark Nolan

    Top SubjectSolo 401k,Solo 401k Contributions

    September 22, 2021 at 10:18 am

    As long as the vendor is not a disqualified party (e.g., your parents, children or your business, etc.) then using the same vendor to manage your solo 401k owned properties would not run afoul with the prohibited transaction rules.

    Please note that if you choose to use the same vendor(s) this would need to be a totally separate engagement (e.g., separate contracts, no cross-default, no pricing/volume discount that considers both retirement and non-retirement activity, etc.).

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