Can I my self-directed solo 401k lend money to my corporation?

QUESTION: I want to use my 401(k) to loan money to a company. This company is owned 100% by another company of which I own 45%. I also am an officer in that company. Question: Can I do that?

ANSWER:  This would be a prohibited transaction because you are an officer of the company. See number 8 of following page.

http://www.mysolo401k.net/Solo-401k-disqualified-person.html

(8) an officer, director (or an individual having powers or responsibilities similar to those of officers or directors), a 10% or more shareholder, or highly compensated employee (earning 10% or more of the yearly wages of an employer) of a person described in (3), (4), (5), or (7)

 Thanks, Fred in Maryland

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Solo 401k Do's & Don'ts

Purchasing Private Shares