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Updated over 6 years ago on . Most recent reply

Solo 401K Loan Question
Can one take a loan from the Solo401K in the current year, and use a distribution from the SoloK to pay back the loan in a future year? For example, if I borrowed $10,000 this year, made payments each month until 2019, can I use a distribution in 2019 to repay the remaining balance on the loan?
The reason I ask is that I have need of the money now, but don't want a taxable distribution from the plan until next tax year.
I don't see any reason why this would be an issue but wanted some expert opinions. I'm not trying to cheat, because I would still pay taxes on the $10,000 distribution in 2019. So the IRS would get it's money in full anyhow. It's just that I'm anticipating a "better" tax situation next year - that is, for personal medical reasons in my family, I'm anticipating a lower level of income next year.
Most Popular Reply

Thank you Justin, much appreciated is the advice of a pro!