Author Topic: 401K to hold a trust?  (Read 1924 times)


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401K to hold a trust?
« on: September 25, 2017, 12:07:26 PM »
Hi all,
     I have a curious question, which so far, I haven't been able to find a definite answer to.  I am researching an investment in a small trust which would be held in a 401K account.
     The trust is setup like a REIT; all the income from the trust is distributed to shareholders who are responsible for the taxes due.  The distributions are historically quite high as a percentage of investment.  The fly in the ointment is that unit/shareholders are responsible for Louisiana state taxes, their home state taxes and federal income taxes.  You are allowed a depletion allowance which softens the blow somewhat.
      What I'm thinking is if you held the shares in a 401K account you would be able to bypass the tax hit.  So far my research on Google is all over the map, with answers from maybe, to definitely not.  Obviously, I'm skeptical that the IRS would let this 'loophole' even exist.  I guess I'm looking for any guidance anyone could offer.
     Thanks for any input.


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Re: 401K to hold a trust?
« Reply #1 on: November 25, 2017, 10:01:19 PM »