QUESTION: Quick question. We have $17k in each self-directed 401k account, one in mine and one in my wife’s solo 401k name. Would I write a check out of each account for 8,500 for the solo 401k loan?
Regards,
Tim in GA
ANSWER: Two separate loans, one for each solo 401k participant, are required. Reason being, the solo 401k loan rules and maximum amount that may be borrowed applies to each solo 401k participant's account separately. As such, the solo 401k provider should prepare 2 loan packets (one for each participant). Therefore, the solo 401k loan payments would flow to each respective participant’s solo 401k bank account.
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