Can I make a loan from my solo 401k to my own political campaign?3 Replies
Top ForumsSolo 401k, Solo 401k ContributionsMay 23, 2022 at 9:52 am
While your solo 401k plan can’t lend money to one’s own political campaign, our plan does allow for a Solo 401k loan feature.
This means that one can borrow funds from his or her Solo 401k and use the funds for any purpose including using for one’s own political campaign.
Please note that the loan must be paid back regardless of what the funds were used for.
Specifically, one may borrow up to 50% of the balance of the Solo 401k not to exceed $50,000. The loan must be paid back on a quarterly/monthly basis in equal payments of principal and interest (i.e. prime rate plus 1% or CD rate plus 2%).
I note that taking a Solo 401k loan is one of the popular features of our Solo 401k plan and we prepare the required loan documents as part of our service for no additional charge.
May 25, 2022 at 2:48 pm
Thanks for responding so quickly.
Still, it appears that I can approximate a loan to my political campaign in that I am permitted to take out a personal loan from my solo 401k and I am permitted to make personal loans to my own political campaign. It just looks like it is a two-step maneuver.
per fec.gov: “Candidates may loan their personal funds for campaign purposes. When they do so, they are making contributions to their campaigns. Unlike other contributions, these candidate contributions are not subject to any limits but are subject to additional reporting”
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