Disallowed Investments | Disqualified Persons
Prohibited Transactions
It's important to know the rules for allowed and disallowed investments, who can and cannot invest with the account funds, and the prohibited transactions in which the account funds must not engage. These lists are not exhaustive. It's advisable to have a free consultation with a Nashional Self-Directed Solo 401(k) Plan Specialist before investing the account funds.
Allowed Investments
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Real Estate
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Most Businesses
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Commodities
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Gold and silver
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Foreclosures
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Private loans
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Private placements
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Mortgages
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Stocks, bonds, and mutual funds
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Tax liens
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And more
Disallowed Investments
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Collectibles—such as baseball cards, art, or stamps
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Life insurance contracts
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S-Corp Businesses
Disqualified Persons
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You
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Your spouse
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Your parents (and their spouses)
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Your grandparents (and their spouses)
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Your children (and their spouses)
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Your grandchildren (and their spouses)
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Your investment advisors
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Anyone who provides a service to your retirement accounts
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Any corporation, partnership, trust, or estate in which you directly or indirectly own 50% or more
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An officer, director, highly compensated employee, or shareholder of 10% or more of the entity described above
Qualified Persons
Everyone else!
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Friends
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Siblings
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Cousins
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Aunts and Uncles
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etc.!
Prohibited Transactions
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Purchasing property that you or a member of your family personally own.
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Purchasing property from or with anyone who provides a service to your retirement plan.
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Personally occupying a property owned by your Self-Directed Solo 401(k).
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Receiving a salary or fee for managing your own Self-Directed Solo 401(k) owned property.
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Investing in, doing business with, or directly benefiting a disqualified person (see above).
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Doing business with an entity of which at least 50% is owned by a disqualified person.
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Self-dealing transactions - any transaction that is made in the interest of or for the benefit of you, a beneficiary, or a disqualified person.
