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Real Estate Investments
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4 Replies
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From a Solo 401k perspective it is certainly possible to invest in real estate syndications.
The pros and cons of a real estate syndication are evaluated as any investment opportunity should be.
Whether UBIT/UDFI will apply will depend on the fact and circumstances as there is no blanket UBIT/UDFI exception for solo 401k investments.
For more information on these topics please see the following:
Real Estate Syndication Investments:
Please note that the investment must be a passive investment of solo 401k funds (e.g. the self-employed person who is investing his/her Solo 401k funds can’t personally be an employee, vendor, vendor, etc. to the investment provider).
The investment must be in the name of the Solo 401k where the Solo 401k owner signs as the Trustee, uses the EIN for the Solo 401k (e.g. so that the investment provider issues a K-1 under the EIN of the Solo 401k rather than under the EIN or SSN of the Solo 401k owner).
See also:
https://www.mysolo401k.net/solo-401k/private-company-investment/
https://www.mysolo401k.net/solo-401k/private-company-investment/
Regarding UBIT/UDFI: https://www.mysolo401k.net/podcast-deep-dive-re-unrelated-business-income-tax-ubit-unrelated-debt-financed-income-tax-udfi/
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