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My CPA recommended that I set up a Solo 401k with My Solo 401k Financial to save on taxes this year. For now, I just want to make pre-tax contributions and invest in a mutual fund at Fidelity. I am interested in making Mega Backdoor Roth contributions later as well as investing in real estate and cryptocurrency. Do I need to open Roth and Voluntary After-tax accounts now? Do I need to open bank accounts now for investing in alternative investments?
No – the additional accounts can be opened later when you are ready to make Mega Backdoor Roth contributions and/or invest in alternative investments.
As part of the onboarding process, will give you access to our next steps questionnaire you can use 24/7 and submit multiple times. For example, you can direct us to simply prepare paperwork to open a pre-tax account for now at the bank or brokerage of your choice.
Later on and when you are ready to do so, we will prepare paperwork to open up additional accounts of Fidelity or bank account or both for Roth Solo 401k and/or Mega Backdoor Roth Solo 401k funds. You can just simply submit the questionnaire multiple times. Keep in mind that the ability to make Roth Solo 401k and Mega Backdoor Roth Solo 401k contributions is not a function of the accounts, but instead is a function of the Solo 401k plan documents and our documents allow for these types of contributions.