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Additional contributions to Solo 401k while in loan repayment
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1 Reply
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If I have a loan out from the Roth sub-account of my solo 401k and am in repayment, I would like to still be able to make contributions each year, separate from the loan repayments. These contributions would be made to the after-tax sub-account and then transferred into the Roth sub-account that has the loan. I don’t see anything in my loan documents that prohibits this, but I want to verify that this is allowed.
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Thanks for the good question!
This confirms that a Solo 401k owner may make contributions (subject to the Solo 401k contribution rules such as the limits, deadlines, etc.) notwithstanding that such person is paying back a Solo 401k loan.
