Roll IRA Balance to Solo 401(k) to access funds thru loan
Is there anything wrong with the idea of rolling an individual business owners traditional IRA balances to a newly formed 401(k) plan to allow him access to these funds thru a loan provision? Rather than withdrawing needed funds this process will allow for tax free loan of a portion of the funds that would otherwise be unavailable unless taxes are paid.
Permalink Submitted by Alan Spross on Thu, 2007-11-01 01:59
Nothing inherently wrong, and this strategy does get some use. The usual pitfalls of 401k loans continue to apply.