Establish Solo 401k in Dallas TX

Establish Solo 401k in Dallas TX | Invest Solo 401k in Dallas TX Real Estate Private Placement 

 

I live in Dallas TX and my current Solo 401k provider (Vanguard) won’t allow me to invest my Solo 401k in a Dallas TX real estate private placement (i.e., a Real Estate Limited Partnership). Do you know if such solo 401k investment is allowed and what type of Solo 401k Provider I would need to transfer my Vanguard Solo 401k to in order to open Solo 401k containing option to invest in the Dallas TX real estate limited partnership?

Solo 401k can be invested in a variety of investments including private placements; therefore, as long as you open a Self-Directed Solo 401k with an administrator or provider whose Solo 401k document allows for investing in alternative interments such as the proposed Dallas TX real estate limited partnership, you next need to familiarize yourself with the Solo 401k prohibited transaction rules.

Some of the specifics regarding the Solo 401k prohibited transaction rules that you need pay close attention mainly deal with making sure that your Solo 401k does not own 50% or more of the Dallas TX real estate limited partnership or, for the matter, any private placement type. Further, you cannot be the general partner of the limited partnership that your Solo 401k invests in because you are considered a disqualified party and are, therefore, prohibited from benefiting directly or indirectly from your Solo 401k plan’s investment in the Dallas TX real estate limited partnership. Put simply, only your Solo 401k can benefit from any investment not the plan’s trustee. Of course, you will ultimately benefit once you begin making Solo 401k distributions, usually at retirement.    

To learn more about how to invest Solo 401k in Private Placements including Dallas TX limited partnership, visit purchasing private shares procedure.