Solo 401k Escrow Deposit Question

BACKGROUND: We wrote a check for $2,000.00 out of the Solo 401K account to a title company as earnest money on the purchase of a rent house.  We opted out of the purchase after the inspection.  The title company returned our earnest money.  They wrote their $2,000.00 check payable to my name personally.

QUESTION: Can we deposit this check into the Solo 401K account, or will the title company need to re-issue a check made payable to Solo 401K?

ANSWER: Because solo 401k funds were used for the earnest deposit, which is the correct method since the solo 401k plan was the party making the purchase, the reimbursement check will need to made payable in the name of the solo 401k plan, as making it payable in your name personally would in effect look like you received the reimbursement personally.

Thank you,

Christi in Wyoming