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Updated over 5 years ago on . Most recent reply

User Stats

38
Posts
48
Votes
Anthony Smoke
  • Rental Property Investor
  • Charlotte, NC
48
Votes |
38
Posts

Solo 401K loans - what are the limits?

Anthony Smoke
  • Rental Property Investor
  • Charlotte, NC
Posted

So I have a Solo 401K plan where I am the trustee, since the IRS allows loans on the Solo 401K to the participant. I have some questions on the IRS rules for loans from a Solo 401K? 

Is there a maximum term length? (i.e. 5 years, 10 years, 30 years, etc)

Is there a maximum percentage of the total value that can be loaned? (10% of total value, 20%, etc)

Is there a minimum interest rate that needs to be charged on the loan?

Thank you in advance for any responses. 

Most Popular Reply

User Stats

1,416
Posts
1,521
Votes
Yonah Weiss
  • Cost Segregation Expert and Investor
  • Lakewood, NJ
1,521
Votes |
1,416
Posts
Yonah Weiss
  • Cost Segregation Expert and Investor
  • Lakewood, NJ
Replied

@Anthony Smoke great questions. I hope an expert like @Bernard Reisz can chime in with some answers for us all.

  • Yonah Weiss
  • Loading replies...