In prepping for making solo 401k participant loan payments, I have a few questions.
No you are not required to use Fidelity’s deposit slip to document the loan payment. Instead, make the check payable in the name of the solo 401(k) plan, on the memo section of the check write your Fidelity non-prototype brokerage account number for the solo 401k and write “solo 401(k) participant loan payment.” Alternatively, instead of making the loan payments by check, you can setup direct deposit from your personal checking account since the loan payments must be made with personal funds. Regarding making direct deposits into the Fidelity non-prototype brokerage account, they can be made by ACH/direct deposit . See the following link that explains the process.
Solo 401k Loan grace period for late payment
Effective January 1, 2002, Treas.Reg.1.72 (p)-1, Q&A 10, provides for a cure period that allows a loan participant to avoid an immediate deemed distribution following a missed payment. The cure period may not extend beyond the last day of the calendar quarter following the calendar quarter in which the required payment was due.
Unfortunately, the IRS regulations do not allow you to setup multiple solo 401k plans and then to borrow $50K from each. This is actually an audit red flag. In short, the solo 401k loan maximum of being able top borrow 50% of your solo 401k balance applies to all solo 401k plans across the board not to each plan. To learn more about the solo 401k regulations, CLICK HERE.