BANCKGROUND: I own an LLC but also have a $130K IRA at Charles Schwab & Co., Inc. Since I am a sole owner/member of my LLC, I wanted to open a solo 401k that has a loan provision along with the opportunity to have checking account ability to invest in non-traditional assets in addition to with the ability to own stock/bonds/mutual funds like my current positions at Schwab.
Your paperwork to establish a solo 401k plan seems straight forward; however, since I know that I will need a separate EIN number for that retirement plan, my question would be the “name” that I file with the IRS to set up the EIN. This retirement plan name would be the same I would use for the account at Schwab, a bank, or other “ownership” of investments that qualify for investment within a 401k plan, and with your organization to create the necessary documentation to create a Solo401k.
ANSWER: Any type of entity can adopt a solo 401k plan. Therefore, if your LLC is the self-employed business that has no full-time employees, a solo 401k can be adopted using the LLC as the self-employment qualifier. With respect to naming the solo 401k, common names often encompass the name of the self-employment entity or the solo 401k owner’s last name. For example, if the name of the LLC is XYZ LLC, then a possible name would be XYZ Solo 401k Trust. On the other hand, if your last name is Smith, then the solo 401k would be titled, Smith Solo 401k Trust. Further, yes our solo 401k plan documents allow for solo 401k participant loan as well as investing in alternative investments such as real estate, tax liens, promissory notes, private companies, in addition to stocks and mutual funds. Lastly, we will assist you in opening a brokerage account at Charles Schwab for your new solo 401k plan after you sign-up for our solo 401k services. The brokerage account for the solo 401k can be setup at any of the following brokerage firms. Please click on each link below to learn more.
Charles Schwab Solo 401k brokerage account
Fidelity Solo 401k brokerage account
TD Ameritrade Solo 401k brokerage account
Thank you for any insight to this matter,
Charlie in Pennsylvania
