The Solo 401k loan rules allow for both Solo 401k
participants to each borrow maximum Solo 401k loan amount of 50% up to $50,000 of their Solo 401k balance (this
includes all assets). The solo 401k loan would be processed separately from
each Solo 401k participant's solo 401k checking account. This means that if,
for example, participant one (the husband for example) rolled over $60,000 from
his IRA to fund his new checkbook control Solo 401k, he could borrow maximum
amount of $30,000 which is 50% of $60,000. The same rule would apply to his wife.
For example, if wife rolled over $80,000 from her Schwab IRA to her new
checkbook control Solo 401k, she could then borrow through a participant loan
maximum amount of $40,000. Note that both loans would be processed form the
same Solo 401k; however, just separately from each solo 401k participant's
checking account as each solo 401k participant's contributions including
rollovers are required to be separately accounted for.
Lastly,
not all Solo 401k providers
allow for Solo 401k loan. Therefore, you may want to make sure you open solo 401k with a provider
that offers checkbook control feature so that you can trustee and administer
your own Self-Directed Solo 401k
and thus add solo 401k loan option.
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