Restating Solo 401k from another provider

I originally set up a Solo 401k with another provider (e.g. Fidelity), but I’m limited to what I can invest in. Can I move my Solo 401k to Sense Financial instead so I can self-direct it and have checkbook control?

Different types of Solo 401k providers

There are different types of Solo 401k providers, and the plan and investment options can be limited by the provider.

• Custodial brokerages, such as Fidelity, can establish a Solo 401k which can invest in their options only
• Self-directed custodians can establish a Solo 401k which can invest in a wider range of options, but through the custodian only. They will charge fees to maintain and invest through the account.
• Self-directed with checkbook control, such as Sense Financial, can establish a Solo 401k which does not require a custodian. The plan is directed by you and gives you checkbook control. It is designed to give the most flexible options (e.g. after tax contributions, Roth conversions) without the fees and delays associated with having a custodian.

Restating the plan

If your Solo 401k was originally established by another provider, the plan would first need to be restated by Sense Financial. A restatement means that the plan is now reliant on Sense Financial’s plan documents, which allow the plan to be self-directed by you with checkbook control.

Restatement process

• You submit your original plan documents to Sense Financial for review
• Sense Financial restates the plan documents and sends them to you for signature
• You sign the plan documents
• You open a new, non-custodial account for your now-restated Solo 401k, using your signed plan documents. The original custodial account cannot be kept and used as it is linked to their plan documents, and you have had your Solo 401k restated.

If you wanted to use Fidelity for this, you would open a new, non-custodial account for your Solo 401k, using our instructions

Bank Account Set Up

• You communicate to the original plan provider that you have had your Solo 401k restated and wish to move the funds to your restated Solo 401k

For Fidelity, you can request to have the Solo 401k assets transferred internally, from the existing custodial Solo 401k account at Fidelity to the new, non-custodial account for your Solo 401k at Fidelity. This transfer in kind by Fidelity can be done without selling the assets.