Short Term Loan |60-Day Distribution | 20% Federal Tax


Can I take a short term loan out of my Solo 401K? I want to take 5K out for 1 week and put it back.


While the minimum solo 401k participant loan amount is $1,000, the rules do allow for early payoff of the loan with no pre-payment penalties.

If you’re trying to take a distribution and put it back within 60 days similar to  the process with an IRA, the rules are different for a Solo 401(k) plan. For example, when you try to do the same with a solo 401k plan, a 20% federal tax has to be submitted to the Department of the treasury even if you later want to rollover the amount distributed back to the Solo 401(k) plan, and in order to take such distribution, a triggering event has to be satisfied. Please see the following for more on this and give us a call if you have more questions.


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 >>


  • Popular Video

  • ROBS 401k Funding Process

  • Solo 401k Contributions Including Mega

  • Checkbook IRA LLC

  • 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.
    Learn more

    Connect with us

  • We’re here to help.

    Call: 800-489-7571


    8:00 am - 4:00 pm PT

    Why us?