Does my Solo 401k need to be registered into public record?
The bank says I have to register my Solo 401k trust into public record. What do I do?
When opening a trust checking account, some clients have been told by their banks, “Your trust needs to be registered with [the state/government organization].” While this may be a bank's policy (and an uncommon one), it is not the law.
Difference between state-filed entities and trusts
Entities such as corporations and LLCs are created through filing with the state, e.g. filing Articles of Incorporation with the Secretary of State office. The filed document is then used to open a bank account for the corporation or LLC. Many banks are familiar with these types of entities.
A trust, on the other hand, is a private instrument that is brought into existence by the involved parties signing the trust agreement. The trust agreement does not need to be filed with the state/ government office or as public record for any reason. Trusts are not state-granted privileges; instead they are instruments granted by common law.
Established on a federal, not state, level
Your Solo 401k is established on the federal level, not the state level. As a retirement plan trust, the Solo 401k is covered by the IRS Opinion Letter that was included in your set of plan documents. The plan is also registered within our document system.
The plan is not registered with the state nor as public record. If requested, you can submit a copy of the plan documents to your bank, such as the Adoption Agreement and the IRS Opinion Letter.