With MySolo401k Financial, You Choose Your Bank or Brokerage
One of the biggest misconceptions about Solo 401(k) plans is that the provider must also hold your money. In reality, that structure is a choice—and often not the best one for sophisticated self-employed investors.
Watch: Your Money – You Choose Where to Hold the Solo 401k Funds
At MySolo401k Financial, we take a fundamentally different approach:
- You choose where your Solo 401(k) funds are held.
- We never custody your money.
That distinction matters more than most people realize.
The Problem With “All-in-One” Solo 401(k) Providers
Many Solo 401(k) providers require you to use their affiliated bank or brokerage account. While this may appear convenient, it can come with serious limitations:
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Limited investment options
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Restrictions on Mega Backdoor Roth strategies
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Inability to work with your preferred financial advisor
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Potential conflicts of interest or referral fees
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Risk exposure if the provider or custodian changes direction or shuts down
In these arrangements, your provider often controls both the plan documents and the money.
That’s not how we believe retirement plans should work.
The MySolo401k Financial Difference: You Control the Money
With MySolo401k Financial, the structure is intentionally separated:
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You control the bank or brokerage account
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We provide the Solo 401(k) plan documents and compliance support
You may choose:
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A local bank or credit union
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Major brokerages like Fidelity, Schwab, or Altruist
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Institutional platforms if you work with an advisor
Your Solo 401(k) funds stay exactly where you want them.
We never have access to your money—and we don’t need it to do our job.
Why This Matters for Advanced Strategies
Because our Solo 401(k) plans are custom-drafted, they support strategies that many off-the-shelf plans do not, including:
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✅ Mega Backdoor Roth Solo 401(k)
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✅ Voluntary after-tax contributions
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✅ In-plan Roth conversions
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✅ Participant loans
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✅ Alternative investments (real estate, private equity, crypto, notes, metals)
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✅ Traditional brokerage investments (ETFs, stocks, bonds, CDs)
You get open architecture, not a walled garden.
What We Do (and Don’t Do)
What We Do
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Draft and maintain compliant Solo 401(k) plan documents
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Support plan setup with your chosen bank or brokerage
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Prepare required IRS forms, including:
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Form 1099-R (conversions & distributions), upon your request
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Form 5500-EZ when required, upon your request
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Plan termination filings, upon your request
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Provide ongoing compliance and plan support
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Help you stay aligned with IRS rules
What We Don’t Do
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❌ Hold your money
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❌ Sell investments
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❌ Provide investment advice
That separation protects you and keeps our role clean and compliant.
Built-In $1,500 Auto-Contribution Credit
Our Solo 401(k) plans include the $1,500 auto-contribution credit, claimed over three years ($500 per year).
Importantly:
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You may opt out of contributing and still claim the credit
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You are not required to contribute a minimum amount
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The credit reduces business taxes dollar-for-dollar
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Claimed using IRS Form 8881
This feature alone can offset most—or all—of your plan costs.
Solo 401(k) Setup Is Simpler Than You Think
To establish your Solo 401(k) for the current tax year, only three steps are required by December 31:
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Complete the online application
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Review the custom plan documents (prepared the same day)
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Sign the documents
That’s it.
Bank/brokerage accounts, EIN setup, and contributions can all happen later—by your business tax return due date (plus extension).
Final Thoughts
A Solo 401(k) is your retirement plan.
Your provider should support your strategy—not control your assets.
With MySolo401k Financial, you get:
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Full control
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Maximum flexibility
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Advanced tax strategies
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Institutional-grade compliance support
Not like other providers who hold your money—because your money should stay under your control.
