Tag Archives: borrow from solo 401k

Borrowing Against 401k | Can you pledge 401k as collateral?

Borrowing Against 401k Question: My Solo 401k funds are in a brokerage account at Fidelity.  This is a great option for me as I have a strong comfort level with Fidelity as I have had a brokerage account there for years.  On occasion, I will tap a line of a credit secured by my brokerage […]

Solo 401k Loan Interest Rate Increase Prime Rate Plus One

The cost of borrowing form your solo 401k plan just increased from 4.50% to 4.75%. In several communications, the IRS has consistently stated that a fair interest rate payment on a 401k participant loan is the prime rate plus one point.  The new prime rate of 3.75% went into effect this week.  It was previously […]

Solo 401k Participant Loan Facts: Borrowing from My Solo 401k

Increased Maximum Solo 401k Plan Loan Amount for Those Impacted by Coronavirus (COVID-19) (CARES Act) Solo 401k plan loan maximum for a qualified Individual (defined as meeting the COVID-19 or SARs-CoV-2 conditions described below) is increased to the lesser of $100,000 or 100 percent of the participant’s vested balance. This increased amount applies to loans made […]

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