QUESTION: The following question popped into my head. I can only have up to a total of
$50,000 outstanding solo 401k loan. Is
that with one solo 401k provider, or can I have one each with multiple solo 401k providers. (so have a total
of $100,000 in loans)? I suspect I know the answer, but I thought I would
check anyway.
Thanks for your time on the phone
this morning.
Regards,
Dan from Oklahoma
ANSWER:
Good question, while the solo 401k rules outlined in IRS Publication 560 allow for multiple solo 401k providers and solo 401k plans, unfortunately the solo 401k loan ceiling amount of 50% or $50,000
that a solo 401k participant may borrow from his or her Solo 401k applies to
all Solo 401k plans sponsored by the
same self-employed company (the company that the solo 401k was setup for). Note however that each solo 401k participant can borrow the maximum solo 401k loan account from his or her own solo 401k. Therefore, if you are married and your spouse is also involved in the same self-employed business for which the solo 401k would be setup for, then you can each borrow from your respective solo 401k funds.
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