The Carry Solo 401k supports the ability to take out a loan from your plan. You’re allowed to borrow up to 50% of your account value, up to a maximum of $50,000.

Solo 401k loans are fast, there are no credit checks, you can use the money for whatever you want, and you have up to 5 years to pay it back. If you’re using the money from the loan to acquire a dwelling unit as your principal residence, you may get up to 30 years for repayment.

The interest rate is prime rate (as reflected in the Wall Street Journal on the date of the loan) + 1%. You may qualify for a lower interest rate if you’re on active duty in the military. The interest is paid back to your Solo 401k plan account.

Our platform only supports one loan at a time and the funds for the loan have to come from one Solo 401k account, it cannot be across multiple accounts.

In order to take another loan out for the full eligible amount, you'd need to wait until 12 months have elapsed from the date you fully pay back the initial loan.

Maximum amount of loan: When added to the outstanding balance of all other loans from all plans of the Employer, a loan may not exceed the lesser of:

A) $50,000 minus the difference between the highest outstanding balance of loans in the past 12 months and the outstanding balance of loans from the Plan on the date the loan is made, or

B) The greater of (i) 50% of the vested account balance under the Plan; or (ii) $10,000.

Here’s how it works:

Keep in mind that the loan start date will be the date you complete the process and withdraw the funds.

In order to withdraw funds, they must be available in cash and show as 'available to withdraw' (not in pending).

It will take a few business days for the funds to arrive in your bank account and you’ll receive a confirmation of your loan withdrawal via email once it’s been processed.

To make a loan repayment:
> Click the 'Loans' tab from your Solo 401k account
> Click into the Loan
> select 'Make Payment' on the upper right hand side of the loan

> The scheduled repayment amount will display and select the funding source and the account the funds are being repaid to

> Confirm the loan repayment details

> You will then be brought to a success screen

Step 1: Navigate to the Loans tab from your Solo 401k account page and scroll down to the Autopay section and click 'Edit'

Step 2: You can then turn Autopay on or off and select the repayment funding source

Click here to learn more about how solo 401k loans work.

If you took a Solo 401k loan out before July 7, 2025 this process may differ slightly for the time being - feel free to reach out to our team using the messaging functionality on the website or via email: support@carry.com if you have any questions.

Your maximum loan amount is the lesser of:

• $50,000, reduced by your highest outstanding loan balance over the past 12 months, or

• The greater of 50% of your vested account balance or $10,000

Your loan is also capped at the amount cash available for withdrawal in your account, the loan must be taken from one Solo 401k account, it cannot be split across 2 accounts.

The minimum loan amount is $1,000. Only one active loan is allowed at a time.

• General purpose loans: 5-year (60-month) repayment period

• Primary residence loans: Choice of 15-year or 30-year repayment

• Payment frequency: Monthly or quarterly, on the same date

• Interest rate: Prime Rate + 1% (fixed for the life of the loan; Prime is

pulled at the time of loan creation)

• Payments are fully amortized (equal payments of principal and interest)

• Payments are made from a bank account linked to your Carry account

Your loan moves through these stages:

1. Due: A payment is scheduled. You'll receive a reminder ahead of the due date.

2. Past-due: The due date passes without a payment.

3. Grace Period: The loan enters a grace period, during which you can bring it

current. You have until the end of the calendar quarter following the missed

payment's due date to catch up. During this period:

• You'll see warning banners

• You cannot create new loans

• You'll need to make manual payments to catch up

4. Default: If the loan isn't brought current by the end of the grace period:

• The loan defaults

• The entire outstanding balance is treated as an early distribution. This becomes a taxable, reportable event — because your Solo 401k is a self-directed plan, you (as the plan administrator) are responsible for issuing the Form 1099-R and reporting the distribution

• Tax consequences apply

Automatic Payments:

• Set up recurring withdrawals from a linked bank account

• Payments are processed automatically

• Can be modified if needed

• If an automatic payment fails (e.g. insufficient funds), the loan is

switched to manual payments

Manual Payments:

• You initiate each payment

• You'll receive reminders ahead of the due date

• Make sure sufficient funds are available

• You can switch to automatic payments later

We don't support splitting a single installment across multiple transactions, or

making off-cycle principal payments. Payments follow the amortization schedule

one installment at a time. You can pay your next installment early (one ahead of

schedule), but you can't pay multiple future installments at once — anything

beyond the next installment stays queued until its due window arrives. You can

also pay off your loan in full at any time.

No — you can pay off your balance in full at any time with no penalty.

Yes, you can:

• Make regular contributions

• Process rollovers

• Make additional investments

However, you cannot:

• Use retirement funds for loan payments

• Take out more than one loan at a time (only one active loan is allowed)

You'll review and e-sign three documents directly on the Carry website (using an e- signature and agreement checkboxes):

1. Solo 401k Loan Application — a summary of your loan request, including the

amount, repayment terms, and your agreement to the loan rules.

2. Solo 401k Loan Procedures — guidelines for how your loan will be processed,

tracked, and repaid, plus key rules to stay compliant.

3. Solo 401k Loan Promissory Note — a signed agreement confirming your promise

to repay the loan, with all terms and conditions laid out.