Common Questions Regarding the Fidelity Brokerage Account for Self-Directed Solo 401k

Q: How long does it take to open?

ANSWER:

It takes 4 to 6 business days to open the checkbook brokerage account for a solo 401k offered by My Solo 401k Financial with Fidelity Investments.

Q: How much does it cost?

ANSWER:

Fidelity Investments does not charge a setup fee for a brokerage account for the solo 401k offered by My Solo 401k Financial.

Q: Is Fidelity Investments responsible for any reporting under the solo 401k offered by My Solo 401k Financial?

ANSWER:

No as the solo 401k trustee and My Solo 401k Financial handle the solo 401k reporting (e.g., Form 5500-EZ).

Q: How do I place investments under the solo 401k?

ANSWER:

If processing an alternative investment such as real estate or promissory note, by writing a check or by submitting a wire directive to Fidelity Investments. If an equity investment such as publicly traded stock or mutual fund, you will logon to the Fidelity Investment brokerage account and process the trade on-line.

Q: What fees does Fidelity Investments Charge?

ANSWER:

Fidelity does not charges stock trading fees, and charges $15 per wire fee. The brokerage accounts also comes with a free checkbook for placing alternative investments and for processing the solo 401k participant loan.

Q: Both me and my brother each own our own LLC’s and have solo 401k plans.  The LLC’s have no employees.  We would like to roll over our solo 401k plans with Fidelity currently into self-directed 401ks and invest in real estate.  Is it possible for us to use our self-directed 401ks to purchase real estate together?  For example could we each use our 401ks to purchase 50% of an apartment complex?

 

ANSWER:

Yes such transaction is allowed under a TIC or LLC arrangement. Click here to learn more. Our self-directed solo 401k plan allows for investing in real estate so we can restate both existing Fidelity solo 401k plans to our plan and then walk you through the proposed real estate transaction.  Lastly, the following page explains the self-directed solo 401k arrangement whereby you can continue to use Fidelity Investments as the custodian of the cash.

 

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 20 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 >>

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