If you are self-employed and have retirement funds, then the Solo 401(k) Plan is an ideal structure for starting a new business or financing an existing business.
The Solo 401K loan can be used for any purpose, including helping paying off a personal or business mortgage.
For a 401(k) or Solo 401K Plan to satisfy the exemption under Internal Revenue Code Section 514, the price paid by the 401K plan for the property or improvement must be fixed when the property is acquired
Note – only nonrecourse leverage can be used when acquiring property by a 401K or Solo 401K Plan
A solo 401k loan is permitted at any time using the accumulated balance of the solo 401k as collateral for the loan. A Solo 401(k) participant can borrow up to either $50,000 or 50% of their account value – whichever is less.
The Solo 401K Plan Loan is a great tool for any self employed business owner seeking immediate funds for their business or for any personal need