Please check out this good question from our Daily Live Zoom call. Subscribe to our YouTube Channel to get notifications of our Daily Solo 401k FAQs.
Self-directed Solo 401k Daily QUESTION: I previously set up a Solo 401k plan with your company. I need to replace my roof on my home. Can I take a loan from my Solo 401k?
Great question – Taking loans is one of the most popular reasons people set up accounts with us here.
Certainly – you can take a loan of up to 50% of the balance not to exceed $50,000. The loan must be paid back in monthly or quarterly payments with equal payments of principal and interest (prime plus 1%) spread over a 5-year term.
So if you have at least $100,000 in your plan, you can borrow up to $50,000 that you can use the proceeds for whatever you want, such as replacing the roof on your home.
The loan needs to be paid back in either monthly or quarterly payments with equal payments of principal and interest with those payments spread out over a five-year term.
We will prepare the required loan documents are part of our services for no additional charge.
