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Do Fidelity and Schwab Solo 401k Plans Allow Loans?
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Question: I’m setting up a Solo 401k at Fidelity or Schwab and want to borrow from it later to clear a credit card. Will the plan let me?
A Solo 401k opened directly on a discount brokerage’s own plan document, such as Fidelity or Schwab, does not allow participant loans.
The plan document controls whether a loan is possible, not the brokerage holding the account. Our Solo 401k plan documents permit loans, and the account can still sit at Fidelity, Schwab, or another bank or brokerage.
Once loans are allowed, the cap is the lesser of 50% of the balance or $50,000. Customers submit a form on our website, and we prepare the loan documents within one business day at no additional charge.
👉 Full breakdown: which Solo 401k plans allow a loan to pay off credit card debt
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