ForumsMega Backdoor Roth Solo 401kMega Roth _ PE investment question

Forums Solo 401k Mega Backdoor Roth Solo 401k Mega Roth _ PE investment question

  • Mega Roth _ PE investment question

    George Blower replied 2 years, 9 months ago 2 Members · 2 Posts
  • 1 Reply
  • Mike G.

    Top SubjectReal Estate Investments,Solo 401k – 5500-EZ
    Top ForumsReal Estate Investments, Solo 401k – 5500-EZ

    Mike G.

    Mike G.

    Top SubjectReal Estate Investments,Solo 401k – 5500-EZ

    July 26, 2021 at 7:57 am

    I have the mega roth mysolo401k trust which owns three schwab accounts…pretax, aftertax and a roth. All accounts have check writing capabilities.

    I am interested in deploying funds in the schwab roth account into a PE fund.

    Is it as simple as forwarding the requested trust documents to the PE admin manager and me (as Trustee) wiring the funds directly to the PE fund? Or are there additional requirements / steps in the process? Distributions from the PE fund would flow directly back to the Schwab Roth account.

    Mike G.
  • George Blower

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

    George Blower

    George Blower

    Top SubjectDaily Live Webinar,Solo 401k

    July 26, 2021 at 8:02 am

    @MikeGrossman

    Mike G.

    Top SubjectReal Estate Investments,Solo 401k – 5500-EZ

    Thank you for posting your good questions!

    In short – yes it is as simple as transferring the funds to the investment provider and completing the required documents in the name & EIN of the solo 401k in order to make the investment. Moreover, you are correct that any returns related to the investment will flow back to the Solo 401k (i.e. the Roth sub-account if you invested Roth Solo 401k funds).

    Please see more considerations below:

    1. Please consider any sections of the subscription agreement that address ERISA and unrelated business income tax.
    2. If you choose to proceed you will, of course, be investing via the Solo 401k which means practically the following:

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