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Bank Account Set Up

THIS STEP IS TO BE COMPLETED AFTER YOU RECEIVE YOUR PLAN DOCUMENTS

Your next step is to open the account(s) for your Solo 401k. 

Please read through the following instructions carefully.

BEFORE PROCEEDING, PLEASE NOTE

  • WARNING:  You cannot commingle personal funds with retirement funds. Your new Solo 401k account can only be funded by transferring other retirement funds into it or by making eligible contributions.
  • The EIN for the Solo 401k trust should be listed on the checking accounts, not your Social Security Number or your business EIN. This is important to prevent any adverse tax reporting.
  • In order for your spouse to participate in the plan, he or she must be an eligible employee. If your spouse does not receive compensation as an employee or partner in the business, then he/she cannot participate and make contributions to the plan. 

SEPARATE ACCOUNTS

Your Solo 401k requires separate accounts per participant and per type (see Summary Plan Description, page 11), such as:

  • Rollovers
  • Employee contributions
  • Employer contributions
  • Roth

All accounts will be titled in the name of your Solo 401k* and using the EIN of your Solo 401k.

For checking accounts, you can assign nicknames to distinguish between the accounts. Nicknames should identify the participant and the type of fund within the 401k, such as:

  • Sam Smith, Rollovers
  • Susan Smith, Roth

Only open the number of account(s) you are currently ready to fund. You can always open additional accounts later as needed.

*You can check the name of your Solo 401k trust by checking the EIN document that was included in your set of plan documents.

IMPORTANT: In deciding between the options below, it is important to consider how you would like to invest the funds.  

If you are planning to invest your funds in real estate or other investments which may require the ability to write checks, do wire transfers, use a debit card, etc., then a bank account is usually the best option.

If you are planning to invest your funds via trading, a brokerage account would be the best option. Some brokerage firms also offer check writing with their non-custodial accounts, but not all do. If you would like check writing, make sure to check below if that specific brokerage offers check writing.   

CHECKING ACCOUNT: WHO TO CONTACT

  • Solera Bank

    As leaders in the self-directed space, Solera features a self-directed retirement team trained in opening accounts for the Solo 401k. In business since 2007, Solera’s accounts are FDIC-insured.

    Solera National Bank
    applications@solerabank.com
    303-937-6426

    Solera will help you establish your Solo 401k checking account(s) with you listed as trustee. Their checking account(s) provide you with complete checkbook control, making things as simple as writing a check or swiping a debit card from your 401k checking account.

    • No monthly service fees
    • No minimum balance requirements
    • Mobile banking, including mobile check deposit with higher deposit limits than the competitors
    • Secure incoming and outgoing wire transfer process with competitive pricing
    • Free Visa debit card for the Solo 401k account (upon request)
    • Non-recourse financing
    • Personalized support from Solera’s self-directed team

    Complete Solera’s application:

    Solera’s online application

BROKERAGE ACCOUNT: WHO TO CONTACT