401K (Solo 401K) Non Recourse Loans
401K or Solo 401K Non Recourse Loans are a great way to leverage your 401K funds to get a better return on your money. Financing the purchase or refinancing a purchase of real estate inside of a Solo 401K has some distinct advantages over using a Self Directed IRA to buy and fund real estate purchases. The process is the same no matter the retirement entity purchasing the property and funding it with a Non Recourse Loan. However the big advantage to the Solo 401K is that there is No potential UBIT, or Unrelated Business Income Tax on any of the profits made inside of the Solo 401K either from rental income or the gains from the sale of the property. When the rules were written for the different kinds of retirement plans, the Solo 401K got a great break in that it is exempt from Unrelated Business Income Taxes.