One of wonderful benefits of your Solo-K plan is the ability for any plan participant to take a loan from their plan accrued value. Of course, there are pros and cons as to whether a participant should take a loan from the plan, but the fact remains is that your PGI 401(k) plan will have this feature.
While some plan document sponsors will require you to complete a form, this is not necessary. As Trustee of your Solo-K and the participant in the plan, you will have the necessary tools right at your fingers to apply for, process and deposit the loan into your personal account. Remember, this is a participant loan to you! As such, you can execute this transaction as the Trustee and participant of the plan.
Well, not really!
Interest Rate for Loan Interest Rate for Loan?
While two methods of repaying the loan are permissible, the most used method of repayment on the loan is:
Whether you ever take a loan from your Solo-K is up to you, the participant. But, your plan should always have the freedom and flexibility to allow a participant to take a loan from the plan.
How much, how long...the IRS rules for 401(k) loans,
You might be a W-2 employee and a self-employed individual with your Solo-K. Learn whether you can have more than one 401(k) loan in this situation
A grab bag (even though there is no bag!) of answers to Participant Loan questions
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