Forming two separate Solo 401k plans and inasmuch do a participant loan from each

QUESTION: If one had two legitimate businesses and entities formed, is there anything that would otherwise prevent forming two separate Solo 401k plans and inasmuch do a participant loan from each, and if so permitted would that be a huge red flag for revenue agency and audits. We don't plan anything abusive or even creative but don't want to invite audits unnecessarily as the time, effort and costs are unwelcome.

Thanks,

Beth in Arizona

ANSWER: The rules are tricky. The companies cannot be related or affiliated. See following pages. 

http://www.mysolo401k.net/solo-401k-controlled-group.html

http://www.mysolo401k.net/be-aware-of-multiple-employer-rules-for-401k-contribution-purpose.html

The first thing the IRS will review in the event of an IRS audit is the outstanding solo 401k loans.