Is the 401k Trust revocable or irrevocable?
Is the 401k Trust revocable or irrevocable? Answer: Revocable and irrevocable trust are terms that are usually applied to a personal trust – one that an individual would set up for estate planning purposes. Those terms are not applied to a qualified plan’s trust, such as the one that is established for a 401(k) plan […]
How do I prove my Solo 401k is a qualified plan?
How do I prove my Solo 401k is a qualified plan? Answer: The absolute best proof that your plan is a qualified plan in the eyes of the IRS is the IRS determination (or IRS opinion) letter that we supplied with your Solo 401(k) plan. The letter is from the IRS and shows that the […]
Signatures and Dates
How should I sign and date my Solo 401k plan documents? Answer: When you receive your Solo 401k plan documents, you will need to sign several documents on the signature line. Unless requested otherwise, you will need to sign for the following roles: Plan participant Trustee Administrator Employer You may notice the plan effective date […]
Adoption Agreement Addresses
What should I do if my address on the Adoption Agreement changes? Answer: The primary purpose of the addresses listed for the plan within the plan documents are to provide contact information of the parties (i.e. the employer, administrator, participants and trustee). If your address changes, you don’t need to necessarily restate the plan documents […]
What date do I enter on my 401k signature pages?
Please enter the date that you are signing the pages. Signing the pages is what brings your 401k plan and 401k trust into existence so you need to make sure you sign the signature pages before you do anything that requires the existence of the 401k or trust.
EIN for Solo 401k Trust
The EIN number that was assigned to me during the set up of my Solo 401k account, it appears to be assigned to my trust. I thought it was supposed to be assigned to my business. Answer: The EIN number is for your trust. As you use your Solo 401k, it is the Solo 401k […]
Separating Roth and non-Roth funds
How are Roth and Non-Roth funds kept separate once transferred into the Solo 401k? Answer: You must keep Roth funds in a separate “designated Roth” bank accounts. This is to ensure accurate accounting for the Roth and non-Roth funds.
Designating my CPA as co-trustee
I currently live outside the US and I want to add my accountant as co-trustee. Is there a way to indicate in the plan documents that the co-trustee is responsible for administrative matters only: Keeping the trust books, filing tax returns, issuing checks, etc. regarding the plan and not expected to make or control investment […]
Is the plan mine or Sense Financial’s?
In several places in my plan documents, I noticed references to Sense Financial Services. So is the plan mine or Sense Financial’s? Answer: The plan is yours. Anytime you see an instance with our name, what that’s referring to is our document system. You chose our document setup for the solo 401k. What we do […]
Rollover funds from a 401k with an outstanding loan
Can I rollover funds from a 401k with an outstanding loan? Answer: It’s best to check with your existing 401k administrator regarding a few issues here. The first issue is whether or not your plan allows for in-service distributions. If not, you will not be able to transfer any assets out of the plan unless […]