Change Solo 401k Provider | Real estate 401k Provider | Self directed Solo 401k Provider | Self Directed 401k Provider | MySolo401k | www.mysolo401k.net

Change Solo 401k Provider |  Self directed Solo 401k Provider

Sometimes you are forced to switch Solo 401k Providers for the following reasons:

  • To gain Solo 401k checkbook control
  • To invest in alternative investments (e.g., real estate, precious metals, Notes, tax liens, etc.)
  • To reduce solo 401k plan document administration fees
  • To gain access to Solo 401k Loan (borrow from Solo 401k)
  • To gain access to making all three contribution types: pretax, Roth, and after-tax

However, you are not always sure about how to go about switching Solo 401k provider.

Of course, before you proceed to Open Solo 401k with a new provider, first make sure the new provider understands why you are looking to make the change so you don’t end up where you started.

Here are the logistics involved in changing Solo 401k provider:

  • You are not required ro file a final Form 5500-Z because you are  simply switching solo 401k plan vendor.
  • Instead, your new Solo 401k provider will easily restate the existing plan when they draft the new Solo 401k Plan Documents (e.g., adoption agreement, Solo 401k Trust Document) by:
  • Referring to the previous Solo 401k provider Plan Adoption Agreement to obtain the original plan effective date and name of the plan. These two items will then be listed on the new solo 401k adoption agreement along with the new restatement effective date.
  • Next, if the Individual 401k or Solo 401k  provider is Fidelity, Charles Schwab or TD Ameritrade, you will have the option of continuing to utilize them for brokerage account services as well  checkbook control (known as 401k checkbook control) because you will be using your new Solo 401k provider’s plan documents which allow for investing in real estate, precious metals, tax liens, trust deeds, private shares, etc. You will also gain access to Solo 401k Loan option.

Visit following links to learn more about switching your Individual 401k to Solo 401k  while still having  option of continuing to use your current  Individual 401k brokerage  provider.

Fidelity Solo 401k

Ameritrade Solo 401k

Charles Schwab Solo 401k

12 Month Period QUESTION:

I called Spark401K and they need to know if we are Transferring the Plan or Terminating.

They also said if it was terminating then there was a 12 month waiting period.

ANSWER:

The plan is being transferred to another solo 401k plan provider. This is referred to as a restatement. Therefore, your self-employed business is not electing to no longer participate in a solo 401k plan. Instead, it is ceasing the services of Plan provider A and using the services of Plan provider B.

Restate Edward Jones Solo 401k Plan QUESTION:

I currently have a solo 401k with Edward Jones, but they now do not allow 401k participant loans to be taken out.  Am I able to close that one out and start up a new one with your company?  Any assistance would be appreciated.

ANSWER:

We have helped a fair number of people with solo 401(k)’s at Edward Jones who want to take a loan. Our IRS-approved plan certainly allows for loans and we handle all of the required loan documents as part of our service for no additional charge.  In fact, we would handle as a restatement so your existing plan would continue to exist but would be governed by our IRS approved plan documents which allow for loans.  You can even keep the account at Edward Jones.

Tags: , , , , , , , ,

About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 18 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>

  • About MySolo401k

    We help our clients take control of their retirement money. Our products and services provide our clients the freedom to invest their retirement savings in their own business as well as alternative investments such as real estate, private companies, promissory notes, precious metals, tax liens and equities.
    Learn more

    Connect with us

  • We’re here to help.

    Call: 800-489-7571

    Monday-Saturday

    7:00 am - 5:00 pm PT

    Why us?
MENU