Real estate loan investor’s eligiblity to open a a Solo 401(k)?
As an investor in real estate loans that produce investment income (no earned income) through an LLC I own, am I eligible to open a solo 401(k)? I know I can’t contribute to the solo 401(k) unless earned income is generated, but is it okay to at least open the solo 401(k) and roll my pre-tax IRA into it?
Permalink Submitted by Alan - IRA critic on Thu, 2024-04-11 22:50
There has not been any IRS pushback as far as I know if a solo K is opened without any current possibility of making employee contributions, and the purpose of the solo K account is to receive pre tax IRA balances to enable back door conversions.