I’d like to set up a brokerage account in the name of my Solo 401k Trust to trade options and buy some stocks. Are there any clauses or designations in the application process I need to look out for while setting up my accounts? Can I fund the brokerage account with a check from my Solo 401k Trust checking account?
Yes, you may open a brokerage account in the name of your Solo 401k Trust.
When opening the brokerage account, make sure to:
- Clarify to your broker is that you are not opening a new retirement account.
Opening a retirement account with a conventional financial brokerage firm means you’re asking them to create and administer a retirement account. This is not what you need since you have already established your Solo 401k through our plan documents.
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.
Some brokerages may label this type of account as "non-custodial" or "non-prototype."
- Use the 401k Trust name for the account
- Use the 401k Trust EIN for the account
For more details on the brokerage account setup process, speak with a representative at the brokerage you are considering. Each brokerage may have a slightly different process for opening accounts in the name of a trust.
We provide contact information, instructions, and links to applications for several brokerages here:
Bank Account Set-up
Once established, the brokerage account for your Solo 401k Trust can be funded by a check from your Solo 401k Trust checking account and/or a rollover.