Can my wife take a loan from our Solo 401k?
My wife used to work for my company and contributed into our Solo 401k. Can she borrow some of her funds as a loan even though she doesn’t work for the company anymore? Answer: Yes, the funds may be used for a participant loan. If your spouse is no longer working for the company, she […]
Can I use my Solo 401k to invest if I go out of business?
Can I use my Solo 401k to invest if I go out of business or close my company? Answer: Solo 401k is considered an employer-sponsored plan. It needs a plan sponsor. If the business that adopted the 401k plan is no longer operating, it is possible to amend the plan if you have another business […]
Am I required to contribute every year to my Solo 401k plan?
Am I required to make annual contributions to my Solo 401k Plan? Answer: Contributions are not required every year. However, the plan will not be considered qualified if it appears from surrounding facts and circumstances that the plan was established as a temporary program. A plan will be considered temporary if: The plan is abandoned […]
Matching contributions for a Solo 401k?
Are there any matching contributions for a Solo 401k? Answer: No. Matching contributions are listed in the Solo 401k Plan as not applicable. There are no matching contributions because the plan is designed to be as flexible as any retirement plan can be allowed by law in the U.S. This might mean that some years […]
Update credit card: Solo 401k annual fee
Question: The credit card you have on file for my Solo 401k annual fee is no longer valid. I now have a new card. How do I update the card you have on file? Answer: You can update the card using following secured link:
Bank account
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 […]
Separate accounts
I read in the banking instructions that I need to have separate account for different type monies in my plan. I understand the difference between pre-tax contributions vs. post-tax (Roth), but why do I need separate account for profit sharing contributions? Answer: Separate accounts are set for each type of contribution because of the different […]
Inherited IRA
I inherited a 401k from my mother who passed away. The current financial institution told her that unless there was an inheritance clause for rollover allowed in the 401k, that they could not authorize a rollover and it would need to be cashed out. Can this inherited account be rolled over into my Solo 401k plan? Answer: A […]
Controlled group
I expect to own a separate business with full time employees. Will this affect my existing Solo 401k for a business I own where I’m the sole owner and the only employee? Answer: One must first determine whether you are part of the CONTROLLED GROUP RULES set up by the IRS and Department of Labor. The […]
The easiest way to open a checking account for your Solo 401k trust
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 […]