Bank Account

Both my spouse and I are participants and co-trustees of our Solo 401k plan. Should we have separate bank accounts under the same Solo 401k, one for each of us?

Answer:

Yes, the rules dictate that you should have separate bank accounts for each participant for each type of monies. Review additional details here:

Bank Account Set-Up

I would like to know if there are any other options besides Wells Fargo that I can use for my SOLO 401K. Wells Fargo is very difficult to transact with. If you have any other large bank facilitators please let me know. Thank you!

Answer:

Yes, there are other options! We do not recommend Wells Fargo for the same reasons. You can locate our preferred bank and all pertinent information here:

Bank Account Setup

What is the easiest way to open a checking account for your Solo 401k trust?

Answer:

It is no secret that the financial services industry is slipping in customer service.  Our clients have opened checking accounts for their Solo 401k trusts at many banks.  Based on client feedback, we have found that the only way to avoid potential problems is to use one of our recommended bankers:

Bank Account Setup

Most banks are likely to make a simple, easy situation become complex and difficult.  Our recommended bankers are experienced and can set up a checking account for your new Solo 401k trust right away.

No support for other banks or bankers

Attempting to open a bank account for your trust with anyone other than our preferred banker may result in dealing with an under-trained or misinformed bank employee who can make the process complicated and difficult. We cannot provide individualized support for this situation.

Instead, we recommend going to our recommended banker.  They understand how the account should be set up and are already familiar with our plan documents.

If you choose to go to another banker and run into difficulties, your options include:

1. Open an account with our preferred banker instead, or
2. Search our help center for “bank” and read all related articles in order to learn how to overcome problems stemming from misinformed/under-trained bank employees

Online banking

With an account opened at our preferred bank, you’ll be able to handle virtually anything through online banking as well as the toll-free customer service telephone number.

Remember, the Solo 401k trust checking account is not like your personal or business bank account.  You will not have similar in-branch needs, such as frequent ATM withdrawals or cash deposits that need to be credited instantly. For the Solo 401k trust checking account, the online banking and the toll-free customer service telephone number should be able to fulfill all banking needs for the 401k.

For example, with online banking you’ll be able to:

• View statements
• View recent activity
• Transfer funds
• View, edit your contact information
• Order checks
• Deposit checks
• Stop payment on a check
• Order cashiers checks
• Order foreign currencies
• Set and change a variety of preferences (message & alert delivery, etc)

If you do not already have a bank account setup for your Solo 401k and would like to work with our preferred banker, please check the Bank Account Set Up Instructions for updated contact information.

Should there be a separate bank account for each participant?

Answer:

If you have more than one participant in your retirement plan, each participant’s funds must be accounted for separately. The easiest way to accomplish this is by setting up separate account for each participant for each type of monies (elective deferrals, profit sharing contributions, Roth, etc).

Answer:

Yes, the Solo 401k trust can have a bank account at an international bank.

When my Solo 401K checking account was opened, a savings account was opened at the same time. When money from my rollover was deposited, it went into the savings, not checking. Is that OK?

Answer:

When our preferred banker sets up a bank account for your Solo 401(k) Trust, the bank may recommend setting up a savings account as well. The savings account can serve two purposes:

1. Some clients like to have the savings account to avoid putting all their money into one account for fraud or insurance protection.

For example, if the check book or debit card is lost or stolen, only one account would be affected.

Also, if more than $250,000 is in the Solo 401(k) Trust, having two bank accounts allows the trust to spread the money into multiple bank accounts so that FDIC insurance covers all the funds in the trust.

2. Money in the checking account will not earn as much interest as money in the savings account, and the trustee of the Solo 401(k) has a fiduciary obligation to earn as much money as possible from FDIC insured funds.

Both accounts are in the name of the trust, so you as the trustee can move the money from one account to the other whenever you choose, which can be done easily online.

How do I order checks for the Solo 401k Trust account?

Answer:

There is no special procedure for ordering checks for the Solo 401k Trust.  When ordering checks for the Solo 401k Trust, please note the following:

• The trust name (e.g. "ABC Solo 401k Trust") must be printed on the checks as the account holder. The trust name should be spelled the same way as it is listed on the plan documents.

• The trust name should also be the name on the bank account.

• The address listed on the checks should be the address listed on the account. If you’d like a different address printed on the checks, please confirm with the bank first.

• The cost of ordering the checks is the expense of the plan and should be paid from the trust's account. (This is NOT a personal expense).

• A debit card can be obtained for the Solo 401k Trust bank account.  A credit card, however, cannot, as it would be considered a prohibited transaction.