What’s the maximum I can borrow from my self employed 401k? Does the loan have to be paid back before I can make contributions for the next year ?

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It doesn't have to be paid back before you make additional contributions

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It depends on how your company sets it up. At my firm, you just process it in Vangaurd. It’s a $50 oringination fee and you can take out the lower of $50k or 50% of your assets. You set a 1-5 year timeline, and that tells you what your paycheck deduction are to payback loan with the interest rate you pay yourself. You can pay it off at any point. If your fired/quit you need to pay it all back by the end of the tax year (it used to be 90 days). I believe that your proposed deduction continues to come out on parallel. I have used it for cash flow when buying a house.

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If this is in a real estate bowl I assume you’re not talking about a loan but a hardship withdrawal. If that’s the case then you won’t be penalized and you can alternatively pay it back within 60 days

If you’re taking a loan…that’s dangerous when you’re also trying to get a mortgage as you’re credit will take a hit due to additional liabilities

I forgot to add, it’s for a purchase of a house. I think a loan is permitted for that purpose.

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