Restate/Change Edward Jones Solo 401k to a Self-Directed Solo 401k

If you currently have a solo 401k through Edward Jones and are now seeking change it to a self-directed solo 401k plan, here are some of the reasons to consider making the move.

  • To gain Solo 401k checkbook control
  • To invest in alternative investments (e.g., real estate, precious metals, Notes, tax liens, cryptocurrency, etc.)
  • To gain compliance support with Form 5500-EZ and Form 1099-R preparation.
  • To gain access to Solo 401k Loan (borrow from Solo 401k)
  • To gain access to making all three contribution types: pretax, Roth, and after-tax

Process:

  • New Solo 401k Plan Documents (vs. Edward Jones “Do it yourself/DIY” plan documents)
    • List the original plan effective date
    • Obtain 401K EIN
  • Close Existing Account and Open New Account(s)
    • Pre-Tax, Roth and Voluntary After-Tax
    • Spouses
  • Edward Jones QRP Distribution Request & Letter of Acceptance
  • Not Required: No Final 5500-EZ or 1099-R

Additional Considerations:

  • If assets exceed $250K:
    • Have you been filing Form 5500-EZ?
    • If not, need to file under the IRS Correction Program
  • Do you wish to keep investments (in-kind transfer)?
    • Confirm that new brokerage account provider offers those funds
  • Are there multiple participants (e.g. spouses)?
    • Segregate the funds and transfer into separate sub-accounts
  • Consider filing an extension to ensure plenty of time to make contributions

Self-directed Solo 401k –
Compliance Support

  • Form 5500-ez
    • If your solo 401k plan balance exceeded $250,000 as of December 31, a Form 5500-EZ is due to the IRS by July 31.
  • 1099-R
    • Distributions, Rollover, In-Plan Conversions
  • Solo 401k IRS Required Plan Updates
    • IRS-required plan updates with the next required update occurring in 2022
  • Contribution Calculation (including Mega Backdoor Roth)
  • Loan Document Preparation
  • Alternative Investments
  • Account Setup
    • Bank, Brokerage, Crypto exchange, etc.

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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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