Tag Archives: Solo 401k Loan

Solo 401k Loan | Roth 401k Loan Rules

QUESTION – ROTH 401K LOAN RULES I am an independent financial adviser with an Individual Solo 401k.  I have approximately $80,000 in pre-tax funds and $60,000 of Roth funds in my Solo 401k.  I would like to take a loan from my Solo 401k to expand my business and payoff some personal credit cards.  How much […]

Securing Personal Loan Using Solo 401k Funds Vs Non-Recourse Loan to Solo 401k

QUESTIONS: I have a solo 401k trust and want to know about leveraging my solo 401k funds for  equity lines of credit; and reverse mortgages. Do yo also have recommendations for banks who are familiar with these type of transactions should he proceed with any of the above transactions through one of the options referenced […]

Compare SEP IRA vs. Solo 401k – Advantages of a Solo 401k

We often hear from small business owners who are comparing a SEP IRA vs. Solo 401k.  For those who qualify for the Solo 401k, they will almost always find that a Solo 401k has certain features that make it the better option.  This post highlights several key advantages of a Solo 401k vs. SEP IRA. […]

Solo 401k Common Distribution Triggers

Solo 401k providers and solo 401k owners often don’t understand that the same distribution rules that apply to full-time employer plans (i.e., those plans with full-time employees besides the business owner(s)) also apply to solo 401k plans. However, that is simply not correct.  Some solo 401k owners will ask the solo 401k provider to assist […]

Solo 401k Loan Limits

One of the main reasons why the self-employed open a solo 401k plan is to be able to borrow/take a loan from the solo 401k plan.  Therefore, it is important to understand how solo 401k participant loans are calculated.  If a solo 401k loan exceeds the statutory limit, the loan will be deemed a distribution […]

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 […]

Primary Residence 401k Loan – Using Your 401k to Buy a Vacant Lot

Question: I have over $100,000 in my Solo 401k and want to take a $50,000 401k loan.  If I use the proceeds of my Solo 401Ik loan to purchase land intended to build a house for primary residence, can the term of the loan be longer than 5 years?  Must there by a residence already on the property, […]

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

Once the solo 401k has been funded, there is no waiting period for processing a solo 401k participant loan. You, as trustee/participant can take a loan/borrow from Solo 401k for any reason. Following are some quick facts regarding the solo 401k participant loan rules. Each participant can borrow from the solo 4o1k provided each has […]

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