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I am a US resident currently employed at a company that I don't own, a peon. I want to do some work on the side so I was going to setup an LLC. With that LLC I was going to rollover 401k funds from previous jobs into a Individual 401k that I was going to open via my LLC.

  1. Can I still be considered Self-Employed?
  2. I was going to take a loan from my LLC 401k. I would like to do more than a 5 yr loan (non mortgage) payback, is that possible? I asked that because everywhere I read it says "Generally, 401k loans are 5yrs".
  3. Actually, at a previous job I had took out a loan to purchase a house, but then I left that job and had to get a bank loan to pay it back. Can I get the loan reissued as if it was a mortgage loan again. I know the answer is no, but just in case.
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Can I still be considered Self-Employed?

Sure. As long as you have income from that LLC that is, not by merely having it.

I was going to take a loan from my LLC 401k. I would like to do more than a 5 yr loan (non mortgage) payback, is that possible? I asked that because everywhere I read it says "Generally, 401k loans are 5yrs".

The IRS says that the loan must be repaid within 5 years. This means that it may be less, but cannot be more.

The loan must be repaid within 5 years, unless the loan is used to buy the participant’s main home. The loan repayments must be made in substantially level payments, at least quarterly, over the life of the loan.

You can only do a longer loan if you're buying a home, which you specifically mentioned that you're not, so here's your answer.

Actually, at a previous job I had took out a loan to purchase a house, but then I left that job and had to get a bank loan to pay it back. Can I get the loan reissued as if it was a mortgage loan again. I know the answer is no, but just in case.

Well, just in case - no:-) Refinancing is not purchasing.

You should get a professional consultation, as I'm not a professional in this area. You need to talk to a CPA/EA about the IRS rules and regulations (the devil is in the details, what they write on their site is suitable for most, but there are always exceptions), and you need to talk to a retirement plan manager about setting up your Solo 401k with plan rules and definitions that will meet your needs. It may be that the standard template that the big firms provide for solo 401k's they have may not be good enough for you.

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It's a simple matter, pro not needed. littleadv nailed every detail. The only missing thing I see in the discussion is whether the new Solo 401(k) permits the loan. I happened to look at Schwab's solo 401 and there is no loan provision. –  JoeTaxpayer Feb 15 '13 at 21:29
    
@Joe that's exactly why a pro is needed. Its extremely easy to mess up and disqualify a plan. The standard template is maintained so that they make sure it doesn't happen, but if you touch it - the responsibility is yours. –  littleadv Feb 15 '13 at 21:32
    
Hmmm. If OP uses a well known broker, they control the administration. Not sure if that's what you meant by 'pro'. The admin will tell him he can't do what's he's requesting. 10 year is home loan only, as you stated. –  JoeTaxpayer Feb 15 '13 at 21:46
    
@Joe I mean that if their boilerplate plan doesn't allow loans, he'll have to setup his own plan that would, and then he'll need a pro to write it up and maintain it. –  littleadv Feb 15 '13 at 21:56
    
agreed, and fraught with risk. –  JoeTaxpayer Feb 15 '13 at 22:22

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