60 Day Rule for SD 401k

[Cory Adams]

I am familiar with the 60 day rule as it applies to borrowing and paying back an IRA within 60 days without penalty, but wanted to know if the same applies to a SD 401k?

You might suggest a loan from the 401k but I already have a loan outstanding on my SD 401k.

Basically I need this as a bridge loan to purchase a property whereby I will be able to payback the disbursement within 60 days.

[Jeff Rabinowitz]

You may borrow up to the lesser of 50% of the balance of your Solo 401k (self directed 401k) or $50K. You must pay it back within 5 years with level payments made at least quarterly. If you have an outstanding balance at the time the loan is made the maximum you may borrow must be reduced by the maximum balance of the outstanding loan during the year before the loan was made. I am somewhat familiar with the rules but am not an expert so am tagging @Dmitriy Fomichenko to see if he will verify or correct my response.