Transferring personal property into Solo 401k Trust
Now that I have my Solo 401(k) Trust set up, I would like to move investment properties that I personally own into my Solo 401(k) yearly, of course, taking into value the maximum contribution per year. What is the procedure to move properties into my Solo 401(k) instead of contributing in cash form?
Answer:
You are considered a Disqualified Person to your 401(k). Therefore what you described above is a Direct Prohibited Transaction:
"4975(c)(1)(A): The direct or indirect sale, exchange, or leasing of property between a Solo 401k Plan and a Disqualified Person"
Be sure that you have a good understanding of Prohibited Transaction. Violation of the rules will result in your entire account deemed distributed.