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Self-directed 401k FAQ: Are Solo 401k loan payments included in Solo 401k contributions?
QUESTION:
I took a Solo 401k participant loan and I am also making Solo 401k contributions. Are my Solo 401k loan payments included in contributions?
RESPONSE:
No, loan payments are not included in contributions. Solo 401k annual contributions from self-employment income cannot be used/applied towards payment of solo 401k participant loans. Solo 401k participant loan payments must be made with personal funds, not business funds or solo 401k funds.
