Q: I have one question: I don't want to contribute to the solo 401k plan at this time, but I just want to transfer IRA funds to the solo 401k to purchase another business. I am a sole proprietor and do not take an actual salary, but rather a draw. Will this qualify? Thanks!
A: If you are looking to use your retirement funds to finance your own business, then the solo 401k will not qualify. Instead, the 401k business financing plan will. A solo 401k is for passive investing whereas the Rollover Business Startup 401k is for investing in one's own active business.
