Self Employed Loan
(The benefits of using an Individual 401k loan as a self employed loan)

Self employed individuals frequently find it challenging to qualify for a self employed loan. High interest rates, long applications, slow loan approval processes and loan rejections are common through banks and lending institutions.

Self employed loans are fast, easy to obtain and have favorable interest rates when utilizing the loan provision available in an Individual 401k.

Self Employed Loans using the Individual 401k

Securing a self employed loan using the Individual 401k is a simple 3 step process.

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 - Existing retirement accounts can be transferred or rolled over to consolidate your retirement assets. You can rollover 401k, 403b, 457 and other previous employer's retirement plans as well as transfer Keogh, SEP IRA, Traditional IRA and IRA rollover accounts 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 rolled over or transferred into your Individual 401k for 10 business days, you are immediately eligible for a loan. 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.

When using an Individual 401k loan, self employed loans are fast, easy to obtain and have favorable interest rates. An Individual 401k loan can be used for any purpose and there are no income or credit qualifications to receive the loan. Also, loan payments of principal and interest are repaid back into your own Individual 401k. The simplicity, speed and favorable repayment terms make the Individual 401k an interesting alternative as a self employed loan.

Learn more about how to obtain a self employed loan 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.