Regulators of The Self-Directed Solo 401k Industry

​Just like all 401k plans, Self-Directed Solo 401k plans are primarily governed by Employee Retirement Income Security Act of 1974, as amended (ERISA), which was comprehensive legislation that culminated after a decade of Congressional and Administrative discussion and consideration.

Jurisdiction over Solo 401k plans is split under ERISA between two Administrative Departments:

  • The Department of Labor (DOL), and
  • The Department of the Treasury, which sets tax policy [and its administrative agency, the Internal Revenue Service (IRS)].

Essentially, the Treasury and the IRS have jurisdiction over the tax issues and qualifications of Solo 401k, and the DOL governs the fiduciary or solo 401k plan trustee’s actions, particularly prohibited transactions.

Solo 401k plan third party administrators and Solo 401k providers are required to comply with IRS and DOL regulations.

In addition, other government agencies are indirectly involved with Solo 401k plans that invest in alternative investments because of the concern for  fraud. These additional government agencies are:

  • Federal Bureau of Investigation (FBI)
  • North American State Securities Administration (NASAA)
  • Securities and Exchange Commission (SEC)
  • Federal Deposit Insurance Corporation (FDIC)

Additional Information

Solo 401k Fiduciary Defined

Solo 401k Disqualified Person Defined

Outcome of Engaging in Solo 401k PT

​Correcting a Solo 401k Prohibited Transaction

Additional Information

Investment Fraud

Targets of Investment Fraud

Reasons Solo 401k Plans are Targets of Fraud

Techniques Used by Fraudsters

Tips for Avoiding Fraud

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