Does the Carry Solo 401k allow solo 401k loans and hardship withdrawals?
Yes, the Carry Solo 401k Plan supports both loans and hardship withdrawals.
About the solo 401k loan
A solo 401k loan lets you borrow up to 50% of your account’s cash balance up to a maximum of $50,000, with a typical repayment period of 5 years.
About the solo 401k hardship withdrawal
A hardship withdrawal allows you to take an early distribution from your plan (before you reach the age of 59½) without being hit with a 10% early distribution penalty from the IRS.
Eligible reasons for taking a hardship withdrawal.
- You become disabled
- You pass away and your solo 401k is transferred to your beneficiary
- You need the funds to prevent being evicted or having your home foreclosed
- Funeral expenses
- Higher education costs
- Uninsured medical expenses
- Purchase of a primary residence
- Repairing your primary residence
Not all cases are eligible and your plan provider will need to assess each application case-by-case.
If you need to take out a solo 401k loan or a hardship withdrawal, reach out to firstname.lastname@example.org or contact us through live chat and we’ll work with you as needed to get the appropriate forms signed.