Can I borrow against my Single(k) assets?
Yes. Single(k) has an optional loan provision.
The lesser of 50% of your vested account balance or $50,000 less your highest outstanding loan balance over the last 12 months.
For example: John has a vested account balance of $150,000. Fifty percent of his account is $75,000; however, the maximum amount that can be taken from the plan as a loan is $50,000.
Maximum Number of Outstanding Loans at One Time:
Prime + 2%
For a general purpose loan, the maximum loan term is up to five years. The maximum loan term for the purchase of a primary residence is 30 years.
$90 loan origination fee.
You are responsible for making loan payments per your amortization schedule and depositing them back into the proper account. Please consult your tax advisor for more information.
We recommend that you fund your loan from either pre-tax or after-tax contributions, but not both. This will make tracking and reporting easier for you in the future.