Generally, under the ERISA code, a loan from Solo 401k to participant (Solo 401k Loan) is deemed a prohibited transaction. However, a statutory exemption is available, provided the following conditions are satisfied: 1. The participant loan follows the guidelines outlined in the solo 401k plan trust document. 2. The participant loan bears a reasonable rate of interest 3. The participant loan is secured Additional Information See ERISA 406(a)(1)(B) See ERISA 408(b)(1)