Federal and state rules may impact the solo 401k owner’s retirement assets.
The most common retirement account for the self-employed in the state of Ohio is the solo 401k plan which is commonly invested in Ohio real estate.
While all 401ks are for those employed to save for retirement, a Solo 401k is for the self-employed with no full time employees. Commonly both spouses participate in the Solo 401k or both business partners since Solo 401k is for maximum of two (2) participants.
Ohio Solo 401k Plan Highlights
Shielded in bankruptcy. A solo 401k or self-directed 401k is afforded bankruptcy protection (The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005).
Limited creditor protection: Limited to the extent reasonably necessary for support. See Ohio Rev. Code Ann. Sec. 2329.66(A)(10)(b)&(c)
Approved by IRS: Ultimately all 401ks including solo 401k plans are approved by the IRS through the issuance of an IRS Determination Letter.
Solo 401k Checkbook Control: You are the named trustee of the solo 401k plan. The solo 401k plan document allow for investing in both equities (mutual funds and stocks), and alternative investments (real estate, notes, precious metals, tax liens, private business, etc.) by writing checks,. We assist you in opening the bank account for the solo 401k at your local bank or credit union in Ohio.
