ForumsReal Estate InvestmentsPool both Spouse’s Solo 401k Funds in same Property Investment

Forums Solo 401k Real Estate Investments Pool both Spouse’s Solo 401k Funds in same Property Investment

  • Judy G.

    Top SubjectReal Estate Investments
    Top ForumsReal Estate Investments

    Judy G.

    Judy G.

    Top SubjectReal Estate Investments

    September 6, 2022 at 9:22 am

    Our solo 401k trust has 2 participants – both spouses. Are we able to combine funds from both accounts to purchase one investment property?

    Judy G.
  • 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 6, 2022 at 9:24 am

    In short, yes. Good question.

    All funds are coming from the same solo 401k plan. In this case, since you are both participating in the same solo 401k plan, you both can fund the real estate investment out of each of respective Solo 401k participant accounts.

    This will result in the following:
    Income from the investment must be split proportionally to the initial investment.
    All expenses on the investment property must also be split in the same manner.

    To simplify paying for expenses, you can pay out of one Solo 401k account and balance the books for both Solo 401k accounts by end of year.
    Following is how the deed is titled when both spouses are participating in the same plan and invest their respective solo 401k funds in the same property.
    “Nolan Ryan, and Susan Ryan, Trustees of Rangers Solo 401(k) Trust”
    Essentially, both trustees are listed on the deed.

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