Solo 401k Plan Provider | Role of Solo 401k Provider | IRS Solo 401k Plan Document
Every now and then we receive the following inquiry from a prospective Solo 401k client:
I know that as a Solo 401k provider you will help to set up the account, but I don’t understand why I need to pay the Solo 401k annual fee after I Open Solo 401k.
The answer is straight forward, most self-directed solo 401k providers like us don’t hold the Solo 401k investments since the business owner is the named Solo 401k trustee and thus administers his or her own investments; however, as the Solo 401k provider, we are responsible for ensuring the Solo 401k document is updated and kept current. In other words, in order for a Solo 401k or self-directed Solo 401k to be in compliance with the IRS solo 401k plan requirements, it must not only be in written form but also updated for change in the law. What’s more, the first item the IRS asks for when auditing a 401k plan is for a copy of the Solo 401k plan document and then reviews it to confirm the plan is up to date and that the plan is being operated in accordance with the outlined terms.
