How to Title Self-Directed Solo 401k Alternative Investments

Unlike equities where the investments automatically get titled in the name of the self-directed solo 401k plan since they are made under the brokerage account, the same is not the case for alternative investments which include real estate, private equity/placements, tax liens, precious metals, and promissory notes, etc.

Titling the Alternative Investment

As an illustration let’s say Matt Sims has a self-directed solo 401k named Eagle Talon Trust and is investing his solo 401k in a private fund. The alternative investment is generally titled as follows:

Matt Sims, Trustee of Eagle Talon Trust

Title can also be taken as follows: Eagle Talon Trust, Matt Sims as Trustee

Title to other alternative investments such as real estate, precious metals, notes, and tax liens would also follow the above titling method.

List the Solo 401k EIN on Form W-9

Just like title to alternative investment is taken in the name of the solo 401k plan, the solo 401k EIN (employer identification number) is used by the investment sponsor, property manager, and partner when issuing tax forms in connection with the solo 401k alternative investment. Therefore, make sure to fill out Form W-9-Request for Taxpayer Identification Number Certification and list the solo 401k plan’s EIN NOT your SSN or your self employed business tax identification number. For guidance in completing Form W-9, VISIT HERE.

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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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