If the 401k participants takes a home equity loan, she can use the proceeds of the loan to invest in the ROBS 401k funded business. This investment would count as part of the individua’s personal stock investment in the Corporation so shares of stock would be issued to the individual. What is more, the company cannot pay back a loan the 401k participant is personally obligated inclluding a home equity loan. However, the individual can use the reasonable W-2 wages received from the 401k funded business (once the company is generating income to justify your reasonable compensation) to pay back this home equity loan.
About MySolo401k
We help our clients take control of their retirement money. Our products and services provide our clients the freedom to invest their retirement savings in their own business as well as alternative investments such as real estate, private companies, promissory notes, precious metals, tax liens and equities.
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