Solo 401k loan limit | Self-Directed IRA | Real Estate

QUESTION: I love your web site.  Here is my question.  With a Solo 401k I understand the max you can borrow is 50% up to 50K.  If I have 120K and borrow 50K as a loan can I use the other 70K to invest in real estate?  (much like a Self Directed IRA).


SW in Washington

ANSWER: First, thanks for the website compliment. We work very hard to keep it up-to-date with fresh information and easy to understand language.  Yes you are correct in that any proceeds not used in the solo 401k loan process may be invested in real estate similar to a self-directed IRA.  In other words, the solo 401k loan rules do not require that liquid funds be left in the solo 401k in the event that the solo 401k loan goes into default

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?