What are some of the benefits of using the loan feature of the Solo 401(k) Plan?

As a result of the recent economic meltdown, banks and other financial institutions have severely limited their lending capacity to self-employed business owners, thus, causing grave financial pressure on self-employed business owners. The Solo 401(k) Plan is a perfect structure for any self employed business owner seeking immediate funds for their business. Solo 401(k) participants can borrow up to either $50,000 or 50% of their account value - whichever is less to help finance or operate their business. Other useful ways of using the participant loan feature is to:

Lend the funds to a third-party who will pay a higher interest rate
Invest in a real estate project that offers a higher rate of return than the low interest rate you must pay
To consolidate debt
To pay for college expenses
To pay for unexpected emergencies
Avoid distribution penalties and gain use up to $50,000 immediately with no restrictions
Invest in a new franchise or business
Make any alternative Investment that will generate a higher rate of return than the low Interest rate imposed on you, such as tax liens, private placements, or mortgage pools.
Invest in a transaction that would otherwise be a Prohibited Transaction under Internal Revenue Code Section 4975.
Quick, easy, and cheap access to a $50,000 loan to be used for any purpose

Please contact one of our 401(k) Experts at 800-472-0646 for more information.