Sense Financial Services provides the plan documents to establish your self-directed Solo 401k plan. Once your Solo 401k plan is established by Sense Financial Services, you have the freedom to set up a brokerage account in the name of your Solo 401k trust at any brokerage firm (e.g. Charles Schwab, Fidelity, E-Trade, TD Ameritrade).
The important thing to remember is that the brokerage firm is not providing or establishing a Solo 401k/ Individual 401k plan on your behalf. While these firms also offer their own Solo 401k establishment service, you have already established your Solo 401k plan through Sense Financial Services.
The role of the brokerage firm is simply to provide a brokerage account for your already-established, self-directed Solo 401k plan. The brokerage firm is not involved in the administration of your Solo 401k. They do not function as custodian, trustee, or fiduciary of your Solo 401k plan.
Your Solo 401k established by Sense Financial Services is structured so that you are the trustee, plan administrator, and fiduciary of your Solo 401k. You have the freedom to self-direct your plan’s investments. Under our Solo 401k, you can invest in both traditional and non-traditional assets, such as mutual funds, real estate, precious metals.
Establishing a brokerage account at a brokerage firm allows your Solo 401k Trust to invest in the traditional assets they offer, such as stocks and mutual funds. Under this arrangement, you can self-direct your Solo 401k with checkbook control while utilizing the investment options of a brokerage firm.
Opening the brokerage account at Charles Schwab
As plan administrator of your Solo 401k, you are able to open a Schwab Company Retirement Account (CRA) for your Solo 401k Trust. The Schwab CRA functions as a brokerage account which holds the assets of your Solo 401k Trust. It is for investment purposes only; Charles Schwab will not do any tax reporting for or administering of your account.
Please visit this page for contact information.
Please click HERE for the forms and instructions for setting up a Schwab CRA.
This will involve reviewing the Schwab ERISA Disclosure, completing the Master Account Application, and establishing a participant account. Please note:
- The CRA needs to be set up in the name of your Solo 401k Trust, using the EIN for your Solo 401k Trust.
- The CRA needs to be structured as Trustee-Directed.
Once your Schwab CRA is established, it can be funded via transfer or contribution.
Note: Brokerage accounts at other trading platforms (such as Fidelity, E-Trade, etc.) can be set up in a similar way. Please inquire with your brokerage for details.