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🔑 Solo 401(k) Loan Terms: Rate, Cap, and Repayment
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What are the actual terms on a Solo 401(k) participant loan — interest rate, repayment schedule, maximum amount? I want to understand the numbers before I roll over my old 401(k).
A Solo 401(k) participant loan through My Solo 401k Financial is capped at the lesser of 50% of the account balance or $50,000 — so a balance of at least $100,000 is needed to reach the maximum. Interest runs at prime plus 1%, or a CD rate plus 2%.
Repayment is made in equal installments of principal and interest, on a monthly or quarterly schedule of the participant’s choosing, over a standard 5-year term. One exception: proceeds used to purchase a primary residence can extend the term to 15–30 years.
Critically, no bank is involved. There is no credit check, no income verification, and no underwriting process. Loan documents are prepared within one business day of submitting the questionnaire on the My Solo 401k Financial website, and interest payments go back into the participant’s own Solo 401(k) account — not to a lender.
👉 Full breakdown: Solo 401(k) participant loan terms and repayment rules explained
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