While it is possible to purchase life insurance with Solo 401k funds, there are strict limitations and it generally doesn’t make sense as a good investment for most investors:

  • No more than 49% of your Solo 401k contributions can be used to buy whole life insurance

  • No more than 25% can buy term or universal life insurance

  • The life insurance purchase is not tax-deductible like other Solo 401k contributions

One of the primary benefits of life insurance products is tax advantages that are lost when buying with 401k funds.

Nabers Solo 401k accountholders have access to our vetted and trained network of great accountants, bookkeepers tax preparers, and tax advisors. Check our accountant resource guide for a list of vetted professionals.

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