Spouse as a realtor for 401k investment property purchase

When I buy investment property in my Solo 401k trust, I will engage the services of a realtor.  I would like to use my wife.  I understand that many spouse transactions are prohibited.  But in this case, the seller pays the commissions so I want to confirm if that would be allowed.

Answer:

No. Your spouse is considered to be a "Disqualified Person." Your 401k is prohibited from engaging in any transaction between the plan and a disqualified person. While sales commissions will be paid by the seller and not by the 401k, your wife would be representing your 401k in this transaction, and that is not allowed.