Borrowing from IRA rolled to a 401k
I have a client that has an IRA and several corporations. If he sets up a Solo 401k plan for each company, rolls 100K into each, can he then borrow the 50K from each 401K, or is he limited to one loan at a time?
I have a client that has an IRA and several corporations. If he sets up a Solo 401k plan for each company, rolls 100K into each, can he then borrow the 50K from each 401K, or is he limited to one loan at a time?
Permalink Submitted by Martin Helmer on Thu, 2008-08-21 22:23
Each person is limited to a maximum total of $50,000 borrowed, when adding up all plans of related employers. See Internal Revenue Code section 72(p)(2)(D). There can be more than one loan but the total can’t exceed $50K.
Permalink Submitted by Tom Brattain on Thu, 2008-08-21 22:25
Thanks! I kind of figured as much.