Some refer to a Solo 401k as ” IRS Solo 401k ” because all Solo 401k plan documents must be reviewed and approved by the IRS through the issuance of a determination letter.
A Solo 401k is also referred to as an “IRS Solo 401k” because on the IRS website you can find specific language that confirms the business owner can act as trustee of his or her own solo 401k plan.
Here’s the link to the IRS web page containing language with respect to who can act as trustee a Solo 401k plan.
And here is the the specific language regarding the solo 401k business owner serving as trustee of his or her own self-directed solo 401k.
“Trusts and trustees. 401(k) plans are funded through a trust established to hold and invest the plan’s assets. At least one trustee is appointed to have responsibility for the activities of the trust and its assets. This is a serious responsibility with considerable potential for liability. Trustees might include the business owner, an employee, or a financial or trust institution.”