Are plan loans allowed?
Certain plan providers do permit them, though standard federal taxes and tax penalties apply if the loan is not paid back within five years. Some also allow hardship withdrawals from these plans (that is, withdrawals taken prior to age 59-½).
The administration duties for a solo 401(k) plan are relatively light.
There are no compliance testing requirements, and you will only need to file an annual Form 5500 with the I.R.S. when the assets in your solo 401(k) exceed $250,000.
On the whole, solo 401(k)s give SBOs increased retirement savings potential.
If that is what you need, then take a good look at this option.
These plans are relatively easy to create, and you are free to have one whether your business is a sole proprietorship, S corporation, C corporation, limited liability company (LLC), or limited partnership.
Certain independent contractors have the freedom to create solo 401(k)s as well.