retirementplanning

Thanks for everyone's insights here, I really appreciate the help.

QDROphile, My bad, I should have included that piece, the investment is in real estate. Thanks.

Bird, Thanks for the reply. Are you saying that the UBTI would likely be calculated on the profit generated by the loan amount? Outside of the UBTI, is that a workable solution? Thanks.

Solo plan is a limited partner in a private equity investment. Capital call has been issued, but the plan does not have additional assets to make the call (also, can't sell other investments, no rollover available, and additional contributions would not be sufficient). Offer has been made by a friend to lend @3% for 3 years. Would this be permissible? Would there be UBTI if it were? Thanks again.

Sure. Solo plan is a limited partner in a private equity investment. Capital call has been issued, but the plan does not have additional assets to make the call (also, can't sell other investments, no rollover available, and additional contributions would not be sufficient). Offer has been made by a friend to lend @3% for 3 years. Would this be permissible? Thanks again.

Is it possible for a third party to loan to a solo 401K plan? I have been researching and have seen some references that an arm's length third party loan to a Solo 401K Plan would represent an exemption from a prohibited transaction as long as the following conditions are met. It must be non-recourse, pay a reasonable interest rate, and be for the benefit of the participants of the plan. I would greatly appreciate it if someone could confirm (or refute) my assumptions. Thanks in advance.