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.



Nothing inherently wrong, and this strategy does get some use. The usual pitfalls of 401k loans continue to apply.

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