Refinance Home | Solo 401k Loan | Treas. Reg. 1.72(p)-1, Q&As 5,6,7,8

QUESTION: Does re-financing our primary home loan qualify as a ‘purchase ‘? We are looking to borrow from the Solo 401k so we can pay down our primary mortgage and refinance it.

Thank you,

P.V. in California

ANSWER: Note that a refinancing cannot qualify as a principal residence plan loan. However, a loan from a solo 401k plan used to repay a loan from a third party will qualify as a resident loan. [Treas. Reg. 1.72(p)-1, Q&As 5,6,7,8]

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 >>