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How is the interest rate on the Solo 401k Participant Loan determined?
How is the interest rate on the Solo 401k Participant Loan determined?
Jeff Nabers avatar
Written by Jeff Nabers
Updated over a week ago

The participant loan interest rate is set as WSJ (Wall Street Journal) prime rate plus 1%. The WSJ prime rate is typically the base rate on corporate loans that’s posted by at least 70% of the 10 largest banks. That median rate plus 1% is your participant loan interest rate.

The participant loan interest rate for your Solo 401k is automatically calculated into the loan documents that are created on your Solo 401k dashboard.

If you do not currently have the Solo 401k feature and would like to activate it on your Solo 401k plan, please contact us through our Support center at [email protected].

For further questions about the participant loan and interest rates, please consult your tax advisor and/or CPA.

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