Can a taxpayer have multiple 401k plans? You bet. But wait, there’s more.
Transcript: Hi, this is John Park with PGI Self-Directed, and contributor to BawldGuy Talking. Today we’re going to talk about a topic that maybe doesn’t affect very many of you, but it’s a fun one. And that is, can you take out multiple 401K plans from two different plans. So like I say, we’re going to have fun with this, and we’re going to use an example. Let’s say you are a W2 employee at a company, and you are participating in their 401K plan. But you also have a self-directed 401K plan for a side business that you have. You have money in both plans. You possibly want to take out a loan from each plan. Can you? The answer is, absolutely yes, provided two things. They are separate business entities, not related to each other, and the ownership of each business or plan is not attributed to the other. So in most cases, that’s not going to be a concern, and you’re going to be able to, if you want, exercise the loan as a participant from your W2 401K, and your self-directed 401K. This is great, folks. It doesn’t get any better than this. The IRA, you can’t even take out loans, let alone two loans from two different plans. So if this helps you, that’s awesome. If it doesn’t, it’s just great education and good information for you. So again, this is John Park with PGI Self-Directed, contributor to BawldGuy Talking, and I hope this information was of benefit to you.