Unfortunately, solo 401k plans are not afforded creditor protection in Michigan from general creditors because a solo 401k just like an IRA is a non-ERISA plan. See Mich. Comp. Laws. Ann. Sec. 600.6023(1)(k).
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.
Michigan Solo 401k Plan Highlights
Not shielded from Creditors. See above. However, solo 401k plans do fall under federal code (ERISA) and 401k anti-alienation protection, your retirement assets are shielded from bankruptcy creditors in the State of Michigan.
Approved by IRS: Ultimately all 401ks including Solo 401k are approved by the IRS through the issuance of an IRS Opinion Letter.
Solo 401k Checkbook Control: Since we name you Trustee of your Solo 401k Plan and our Solo 401k plan document allows for investing in both equities (mutual funds and stocks), and alternative investments (real estate, notes, precious metals, tax liens, private business, etc) by writing a check, we will assist you in opening Solo 401k checking account at your local bank or credit union in the State of Michigan.
