Step 1: Log into your Carry account and navigate to your Solo 401k dashboard

Step 2: Locate and click on the "Transfer" menu in your Solo 401k section

Step 3: Click the "Add New" button to initiate the loan creation process

Step 4: Read through the first educational screen about loan rules, including:

• Maximum borrowing limits

• Repayment requirements

• Interest rate information

• Tax implications

Step 5: Review the second educational screen covering:

• Payment frequency options

• Default scenarios

• Documentation requirements

• Legal considerations

Step 6: Select your account type. You can choose between Solo 401k Roth or Solo 401k Pre-Tax. If you only have one account type, this will be pre-selected.

Step 7: Enter your desired loan amount. The minimum is $1,000 while the maximum is either $50,000 or 50% of your account balance, whichever is lower. The system will automatically calculate and display your maximum eligible amount.

Step 8: Select your loan type. You can choose between a General Purpose loan, which has a 5-year repayment period or a Real Estate loan, which has either a 15 or 30-year repayment period (only for primary residence purchase).

Step 9: Set your loan start date. It must be the current date, and cannot be backdated or scheduled for the future.

Step 10: Select your funding source. It must be a personal bank account, as business accounts are not eligible and retirement accounts cannot be used.

Step 11: Choose your payment method. You can choose between automatic payments, where your funds are automatically withdrawn on schedule, or manual payments where you'll need to initiate each payment.

Step 12: Select payment frequency. You can choose between monthly or quarterly.

Step 13: Review your complete amortization schedule: • View all payment dates • See principal and interest breakdown • Confirm total payment amounts

Step 14: Sign required documents: • Loan application form • Loan procedures document • Promissory note

Step 15: Review and accept terms and conditions: • Read all disclaimers • Understand default consequences • Confirm understanding of tax implications

Step 16: Submit your loan application

Step 17: Await processing: • Typical processing time: 3-5 business days • You'll receive email confirmation when approved • Funds will be transferred to your designated account

Step 18: Monitor your dashboard: • Track loan status • View upcoming payments • Access payment history • Manage loan details

What are the exact loan limits?

Your maximum loan amount is calculated as the lesser of: • $50,000, or • 50% of your vested account balance The minimum loan amount is $1,000.

For multiple loans: The sum of all outstanding loan balances cannot exceed these limits.

What are the detailed repayment terms?

• General purpose loans: 5-year maximum repayment period

• Primary residence loans: Choice of 15 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)

• Payments must be amortized (equal payments of principal and interest)

• All payments must come from a personal bank account

What happens if I miss a payment?

1. You'll have an initial grace period of 5 days before payment due date, you'll receive a reminder.

1. Cure Period: Extends until the end of the next calendar quarter

2. During Cure Period: • You'll see warning banners • Cannot create new loans • Must make manual payments

3. If not cured by deadline: • Loan defaults • Entire balance converts to early distribution • Form 1099-R issued • Tax consequences apply

What are my payment options?

Automatic Payments:

• Set up recurring withdrawals

• Payments processed automatically

• Requires valid personal bank account

• Can be modified if needed

Manual Payments:

• You initiate each payment

• Receive reminders 5 days before due date

• Must ensure sufficient funds available

• Can still set up automatic payments later

Can I make multiple payments?

We don’t support splitting payments across multiple transactions for a single installment or making off-cycle principal payments. The system calculates any amounts due as a single total and processes them together following the set amortization schedule. Any extra payment will be applied toward a future scheduled payment.

Is there any prepayment penalty?

No, you are able to pay off your balance in full at any time.

Can I continue retirement account activities with an active loan?

Yes, you can: • Make regular contributions • Process rollovers • Receive payroll deposits • Make additional investments

However, you cannot: • Use retirement funds for loan payments • Exceed loan limits with additional loans • Use business accounts for repayment

What documents will I need to review and sign?

Required Documents:

1. Loan Application Form • Details your loan amount and terms • Personal information verification • Payment schedule selection

2. Loan Procedures Document • Outlines rules and requirements • Default procedures • Payment specifications

3. Promissory Note • Legal agreement to repay • Interest rate confirmation • Terms and conditions