QUESTION:
How much can I lend from my solo 401k for an unsecured loan? My beginning
balance is $208,000.
ANSWER: The self-directed 401k regulations do not place a dollar restriction on
loan investments (aka promissory notes) as long as the loan is an investment
and not a loan to the solo 401k owner. Also, the promissory note cannot be made
to a disqualified party and the investment must be made with the intent to grow
the 401k.
See following link for a list of disqualified parties.
http://www.mysolo401k.net/
http://www.mysolo401k.net/
See
following link for prohibited transaction rules.
See following link for promissory note investment sample
procedure.
Thanks Linda
in California
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