Self Employed Loans

Self employed loans are fast, easy to obtain and have favorable interest rates when utilizing the loan provision available in an Individual 401k. Using your Individual 401k's balance as collateral you can borrow up to 1/2 of the total value of your Individual 401k up to a $50,000 maximum.

Self employed loans are often necessary to provide capital to finance the startup of a business, to provide needed cash for short term business needs, or to provide capital to grow and expand your business.

Historically, qualifying for self employed loans has been a challenge for many entrepreneurs. High interest rates, long applications, slow loan approval processes and frequent loan rejections are common through banks and lending institutions.

What are the advantages of using an Individual 401k loan as a self employed loan?

1. The loan can be used for any purpose
2. There are no income or credit qualifications to receive the loan
3. The monthly loan payments of principal and interest are repaid back into your own Individual 401k

What is the process to secure a self employed loan using the Individual 401k?

1. Setup an Individual 401k - You are permitted to setup an Individual 401k provided you are self employed and have no full time W-2 employees other than a spouse. You are eligible to establish an Individual 401k for a side business even if you participate in a 401k, 403b or 457 plan through your primary employer. Sole proprietorships, S and C corporations, partnerships and LLCs qualify.
   
   
2. Rollovers and Transfers - You can rollover your 401k, 403b, 457 retirement plan from a previous employer. You can transfer a Rollover IRA, Traditional IRA, SEP IRA, Keogh etc. into your Individual 401k. By consolidating your existing retirement accounts into an Individual 401k you build the 401k's balance quickly and then can use its value as collateral to receive a larger self employed loan.
   
   
3. Submit Loan Request Form - Once the retirement assets have been transferred into your Individual 401k for 10 business days, you are immediately eligible for a loan. You are permitted to receive a loan up to ½ of the total 401k value up to a maximum of $50,000.

Learn more about how to obtain self employed loans using an Individual 401k loan.

   Need Help or Advice?  |  Open an Individual 401k

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.