Solo 401k Credit Card | Personal 401k Line of Credit

SCENARIO & QUESTIONS: I went to my local bank to set up my solo 401k bank accounts and here is what they are proposing:

1.  they offered a credit card

2.  they offered a  line of credit for $xxx,xxx  via  a personal guarantee

Since I have not used the above, perhaps it should all be canceled, if it is not allowed by the IRS. Or if I can use the credit card, makes the ID process simpler vs. writing checks not to mention at least the 30 days leverage. An additional line of credit could be powerful, if legal?

OUTCOME & ANSWERS: I don’t know what bank you are trying to open the solo 401k bank account at but good thing you did not proceed as detailed above. You see the use of a credit card in conjunction with your self-directed solo 401k, especially if issued in your name, would be considered a prohibited transaction. Further, obtaining a personal loan/line or credit based on your solo 401k plan funds is also prohibited.