Welcome to the Solo 401k Beginner’s Guide

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Client Portal
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Client Portal
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Client Portal
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Understanding the Solo 401k Process

Setting up your Solo 401k is a three-step process.

  • Step 1:  your plan documents are created

    The process begins when you submit a completed Client Information Form (Step 1).  We will then create the plan documents for your 401k.

Understanding Solo 401k Plan Documents

The plan documents have been created for you in order to establish your Solo 401k plan and trust.  The trust has been established to hold the assets of your plan.

  • Action by Board of Directors documents the formal decision by your adopting business to adopt the 401k.

    What you need to do:

    [themify_icon icon=”fa-check-square-o” ] Sign and date the document. Use the adoption date as the date of signature.

    [themify_icon icon=”fa-check-square-o” ] Keep this signed document in your file.

The IRS will occasionally release amendments to the plan.  When this occurs, Sense Financial will update your plan documents for you.  We will send you the amendment documents and instructions via email. 

Please follow the instructions in these emails.  You will need to adopt these amendments for the plan to remain compliant.

 Understanding your Role as Plan Administrator

You are the Plan Administrator of your 401k plan.  It is important to understand and administer your responsibilities as Plan Administrator. Failure to properly administer your plan can result in the disqualification of your 401k and may incur penalties by the IRS or DOL.

  • As Plan Administrator, you are responsible for:

    1. Recordkeeping
    2. Reporting, if needed

    Your first responsibility as Plan Administrator is recordkeeping.  This includes keeping records of the following:

    • Plan documents
    • Beneficiary Designation form(s)
    • Any rollovers into the plan
    • Any contributions made to the plan
    • Any transactions of the plan
    • Any investments made by the plan

    All plan documents, including signature pages, must be kept by you as Plan Administrator.  This can be in the paper and/or digital form. 

    You must also keep complete and accurate records of all 401k activities.  This must be done on an ongoing basis.

    Records of contributions and investments must be kept by you as Plan Administrator.  Forms for recordkeeping are available on the client portal.  It is your responsibility to complete the appropriate form and keep it in your file as part of your records.

  Understanding the Client Portal

The client portal is an important tool for setting up and maintaining your Solo 401k.

  • Administering your Solo 401k is not complicated, but you must take the time to become familiar with your responsibilities.  This client portal is designed to assist you.

    Resources available on the portal:

    • Transfer/ Rollover instructions
    • Bank/ brokerage account instructions
    • Contact information for banks and brokerages
    • Forms for recordkeeping
    • Solo 401k Loan application and instructions
    • 5500-EZ instructions
    • Prohibited transactions information
    • Solo 401k video library
    • Knowledge Base articles on how to use the Solo 401k
    • Updating password and credit card information

    Check the client portal often.  Important notifications are posted on the portal, along with the resources needed for your 401k.

    Client PortalIntroduction to the Client Portal

   Maintaining your Solo 401k

You are responsible for maintaining your 401k.  This will include:

   Investing with your Solo 401k

The Solo 401k allows you to invest your 401k funds in traditional and non-traditional assets.  Now that your Solo 401k is established, you can direct the investments of the 401k.

   Taking a Solo 401k Loan

Your Solo 401k plan includes a loan feature.  The administration of a 401k loan is your responsibility as Plan Administrator.