Pay Day Loan - 401(k) Loan Boost Business Startups ...

Pay Day Loan -
401(k) Loan Boost Business Startups
...

Solo 401(k) retirement plans with a loan feature first became available in 2002 as a result of tax law changes that lifted restrictions on business owners getting a loan from their 401(k) plan.This change is important because in most cases when one withdraws money from a retirement account prior to age 59they are hit with a 10% tax penalty on top of the regular income tax. A 401(k) loan, on the other hand does not trigger these tax consequences as long as the loan is repaid according to IRS guidelines.Lamaute Capital, Inc., an investment firm specializing in retirement plans, reports seeing increased traffic on its website Click2Borrow.com from small businesses interested in the loan feature of the Solo 401(k). The Solo 401(k) - also called a Self-Employed 401(k) or Individual 401k) - is designed for businesses with no employees.You can initially fund a Solo 401(k) plan by rolling ove