Must My Solo plan that is 401k interest rate be reviewed every time a fresh Solo 401k loan is manufactured?

Must My Solo plan that is 401k interest rate be reviewed every time a fresh Solo 401k loan is manufactured?

Yes. The DOL regulations require that the rate that is reasonable of standard must certanly be evaluated at each and every time that loan is originated, renewed, renegotiated, or modified. See DOL Reg. 2550.408b-1(a) (3) (ii)

As a result, a Solo 401k plan sponsor cannot merely select that loan price at that time the program is setup and use that rate continuously. Continue reading “Must My Solo plan that is 401k interest rate be reviewed every time a fresh Solo 401k loan is manufactured?”