401K Plans -- Prohibited Transactions

[Guest John P.]

Okay, here are a couple of questions that scream PT, but I think I have seen something recently on one of these issues. Any help is appreciated.

1) Mother has a trust. The beneficiary of the trust is not her children. she has a residence in the trust. Can her daughter (who has a solo 401K) plan purchase the property from the trust. I think not, but want to know if I am missing something. Thanks.

2) Solo 401K plan purchases an office building. Can the 401K rent space to the 401K account holder provided both can demonstrate that the rent is commensurate with the rent for the area and the building? I seem to think I have seen something on this that would permit this type of activity. Any thoughts? Thanks.