Lending Opportunity while having outstanding solo 401k Loan


I would like to use the money that I have in my Solo 401K to lend to a real estate investor short term (up to one year) for his rehab. Currently, there is about 70K in my account, but there is existing solo 401k loan that I should be paying off completely in January. Is the solo 401k loan affecting how I can use the money in the Solo 401k account?


1. No outstanding solo 401(k) participant loans do not affect how the owner invests the rest of her solo 401k funds. In other words, the solo 401k owner is not required to keep funds in reserve because she has an outstanding solo 401k Loan. Therefore, the remaining solo 401k funds can be invested in investments such as promissory notes, real estate, and tax liens, to name a few.

About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>


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