Self Employed Loan using the 401k

One of the benefits of a Self Employed 401k versus other self employed retirement plans is the ability to receive a loan using the 401k's balance as collateral. A Self Employed 401k loan can be provided tax free, penalty free and without credit checks or income qualifications and the money can be used for any purpose. The simplicity and ease of a Self Employed 401k loan is a key benefit and may be considered a valuable feature for many self employed business owners.

Self employed 401k loans are permitted up to 1/2 of the total value of the Self Employed 401k up to a maximum loan of $50,000. Existing retirement accounts can be be transferred or rolled over to consolidate your retirement assets. You can rollover 401k, 403b, 457 and other previous employer's retirement plans as well as transfer Keogh, SEP IRA, Traditional IRA and IRA rollover accounts into your 401k. By consolidating your existing retirement accounts into a  Self Employed 401k you build the 401k's balance quickly and then can use its value as collateral to receive a larger self employed loan.

A Self Employed 401k loan is very valuable because it can serve as a financing tool to provide capital to finance such things as the startup of a business, to consolidate debt, to pay for college expenses or for unexpected emergencies.

Read in-depth information about a self employed loan using the 401k.

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Disclosures:

*  The information on this page is for informational purposes only and does not constitute, and should not be construed as, professional, legal or tax advice. To determine your individual tax situation and specific needs, please consult a professional tax advisor.

* Information contained in these sections merely highlight some benefits. There are risks involved with all investments that could include tax penalties and risk/loss of principal.