My wife and I have a regular Solo 401K with Charles Schwab under my S Corporation. Under this S Corp Solo 401K, both my wife and I participate and have invested in different mutual funds. If your company can help me set up a Self-Directed Solo 401k, will I be required to liquidate my mutual fund holdings and transfer the money to the new Self-Directed solo 401K?
we can convert your existing Charles Schwab Solo 401k to a Self-Directed Solo 401k because as a Solo 401k provider our plan affords the business owner to serve as trustee of his or her Solo 401k and allows for investment diversification such as real estate (e.g., foreign real estate, domestic real estate, rentals, fixer-uppers, condos, flipping, duplexes, family homes, etc.), promissory notes, tax liens, commodities, precious metals (e.g., gold and silver coins, bars), private equity, hedge funds, stocks and mutual funds, and more.
What’s more, we can open brokerage account at Schwab for your new Solo 401k and internally transfer all or some of your current mutual fund holdings to the new Charles Schwab Self-Directed Solo 401k brokerage account, thus you will not need to liquidate your mutual fund holdings. Therefore, by using our plan documents to open Solo 401kbrokerage account with Schwab, you will server in trustee and administrator capacities over your Solo 401k that comes with checkbook control and Solo 401k Loan feature. This means you can purchase alternate investments such as real estate by writing checks from your new Self-Directed Solo 401k Schwab brokerage account and process your Solo 401k loan after we prepare the Solo 401k loan documents. Visit Charles Schwab Solo 401kBrokerage Account to find out from A-Z how to gain checkbook control over your existing Charles Schwab Solo 401k.
Can I keep some of the mutual funds holdings?
As detailed above, by using us your self-directed Solo 401k provider, you gain option to continue to invest in mutual funds and thus continue to keep your existing mutual fund holdings under the Charles Schwab brokerage platform.
Regarding your Solo 401k fees, since both my wife and I participate in this Self-Direct Solo 401k, will you charge us one set fee or twice?
We only charge one Solo 401k setup fee because you and your wife would be participating in the same self-directed Solo 401k, but two separate sub accounts (brokerage accounts) would be opened at Schwab, one for you and the other for your wife.
Your website also states an annual flat fee for Solo 401k plan. Will this flat fee be fixed for the future years or will it be subject to annual increase?
he Solo 401k setup fee and annual fee that we charge covers both Solo 401k participants. Yes the annual fee is fixed for life.