Investor · Stevens Point, WI · Member since 2018 · 89 posts · 25 votes
If I have a Solo 401k funded at $200k and a traditional (company ran) 401k funded at 200k also, can I take $50k loan from each to have $100k for a downpayment on a rental property?
Investor · Stevens Point, WI · Member since 2018 · 89 posts · 25 votes
7y
Is that 12 month timer for either account or does each have its own 12 month timer? Meaning, if I took a loan of 50k from the solo 401k, could I also simultaneously take a loan from the other 401k? Or do I need to wait 12 months even though they are two separate accounts?
Each plan has its own rules that apply to it. One does not affect the other. If your employer 401k allows participant loan - you can borrow from your plan subject to the rules (contact your employer for details). In addition to that if your Solo 401k plan has loan provision - you can take a loan from this plan as well, subject to the plan rules.
The 12-month rule applies at each plan level - so even though you may have had an outstanding loan on your day time employer sponsored 401k plan this will not impact your ability to take a Solo 401k participant loan.