Can I pre-pay my Solo 401k loan?

January 4, 2023 | By George Blower

Self-Employed Individual 401k Loan FAQ – Can I pre-pay my Solo 401k loan?

Please check out this good question from our Daily Live Zoom call. Subscribe to our YouTube Channel to get notifications of our Daily FAQs.

Self-Employed Individual 401k Loan FAQ: Can I payoff a solo 401(k) loan before the initial due date?

RESPONSE:

Yes – the solo 401k owner can certainly prepay a solo 401(k) loan.

There is no prepayment penalty.

The terms of a Solo 401k loan are equal monthly or quarterly payments of principal and interest spread out over a 5-year term. The interest rate is prime +1% or could be a CD rate +2%.

For more on Solo 401k loans, please click HERE.

Tags: loan payments, prepayment, self-directed 401k, self-employed 401k, Solo 401k, Solo 401k Loan

About George Blower

I have the privilege of educating our clients about our products and services so that they can make informed and confident decisions about their financial future. Prior to joining My Solo 401k Financial, I served as the general counsel for a subsidiary of a Fortune 500 financial services company. Learn more about George Blower and My Solo 401k Financial >>

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