Solo 401k Loan Procedure

Those self-employed business owners looking to access capital for their business may want to consider processing a solo 401k loan from their self-employed 401k. When you borrow from your Solo 401k plan, the same rules apply as when you borrow from any other type of 401k plan, such as one offered through a big company that sponsors a 401k.

Procedure for taking a loan /borrowing from a Solo 401k and repaying the Solo 401k loan

Step 1: Make sure to open a Solo 401k with a provider whose Solo 401k plan documents allow for a solo 401k loan. Generally the big brokerage firms will not permit Solo 401k loans inside their Solo 401k. However, there are ways around this.

Step 2: After obtaining solo 401k plan documents from your new solo 40k provider, take the signed plan documents to your local bank and open the Solo 401k bank account.

Step 3: Have your new Solo 401k provider prepare form for transferring your former employer retirement plan such as a 401k, as well as IRA rollover form for transferring your IRA to your ne Solo 401k bank account.

Step 4: After Solo 401k bank account is funded, request solo 401k provider to prepare solo 401k loan documents and payment schedule. This is a very important step as the IRS and DOL rules require the Solo 401k loan properly documented.

Step 5: Sign the Solo 401k loan documents and return copy to your Solo 401k provider for safe keeping.

Step 6: Process Solo 401k loan proceeds from the Solo 01k bank account by writing a check payable in your name and writing “Solo 401k Participant Loan” on the memo section of the check.

Step 7: Retain copy of solo 401k loan check, Solo 401k loan documents and payment schedule.

Making Solo 401k Loan Payments

Step 8: Follow the Solo 401k loan payment schedule

Step 9: Solo 401k loan payments will either be made monthly or quarterly as elected in the payment schedule. Note that the Solo 401k loan cannot be modified once it is processed.

Step 9: Write check from your personal bank account not the Solo 401k bank account when making Solo 401k loan payment.

Step 10: Make the Solo 401k loan payment checks payable in the name of the Solo 401k and write Solo 401k loan payment in the memo section of the check.

Step 11: Make a copy of each loan payment check for your records before depositing the check in your Solo 401k bank account.
Sabung Ayam
Austin Hanks with ZZ Top
DON’T MISS ROCKER, AUSTIN HANKS, AS HE OPENS FOR ROCK LEGENDS, ZZ TOP AND PERFORMS TRACKS FROM HIS RECENTLY RELEASED HARD-DRIVING ALBUM, ALABASTARD.
The celebrated songwriter's follow-up to 2005's solo debut Salt of the Earth features Billy Gibbons of ZZ Top, Rickey Medlocke of Lynyrd Skynyrd, Steve Ferrone of Tom Petty, and Jimmy Hall of Jeck Beck and Wet Willy.
Produced by Grammy Award Winner DAVID BIANCO (Tom Petty, Bob Dylan, Johnny Cash, U2, David Bowie, Fleetwood Mac and many more). Co-produced by Austin Hanks and Executive Producer, Billy Gibbons.
A singer-songwriter and left-handed guitar player from the foothills of the Appalachian Mountains of Alabama, Austin Hanks currently resides in southern California. His music has been described as “rockin’ country soul” and “genuine juke and twang from the dirty south.”
Hanks' country-rock sound doubles down on roadhouse honky tonk with infectious southern boogie guitars. His raspy Jackson Browne-like tenor delivers each song with undeniable grooves and frontman power not unlike rock and roll legends Tom Petty and Bruce Springsteen.

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SABUNG AYAM