Self-employed 401k FAQ: Can I transfer my client’s Solo 401k at Fidelity to Schwab where I custody?

Please check out this good question from our Daily Live Zoom call. Subscribe to our YouTube Channel to get notifications of our Daily FAQs.

Self-Employed 401k Question Answered: I am CFP with a client who has a Solo 401k at Fidelity.  I custody at Schwab.  Can you help me with a transfer from Fidelity to Schwab?

RESPONSE:

In short, yes.

We have many clients, whether they’re coming to us directly or through an advisor with an advisor, who have an existing basic plan at a brokerage (e.g. at Fidelity, Schwab, TD Ameritrade, etc.) who wish to upgrade their plan to our plan to take advantage of the services and features that our plan offers (including Roth, Mega Backdoor Roth, 401k loans, 5500-EZ and 1099-R preparation, alternative investments, etc.).

The process to changeover is called a restatement.

One way to understand the process is to think of it as a cut-and-paste where the existing plan documents are replaced with our plan documents which allow the client to do whatever it is that that wish to do (e.g. Roth, loans, etc.).

The client will need new accounts. Those new accounts could be at the same institution but they don’t have to.   Moreover, I note that we will prepare the paperwork to open the new accounts (e.g. paperwork to open new accounts at Schwab Institutional so that the advisor will have access to the account(s)).

Tags: , , , , , ,

About George Blower

I have the privilege of educating our clients about our products and services so that they can make informed and confident decisions about their financial future. Prior to joining My Solo 401k Financial, I served as the general counsel for a subsidiary of a Fortune 500 financial services company. Learn more about George Blower and My Solo 401k Financial >>

  •  

  • Popular Video

  • ROBS 401k Funding Process

  • Solo 401k Contributions Including Mega

  • Checkbook IRA LLC

  • About MySolo401k

    We help our clients take control of their retirement money. Our products and services provide our clients the freedom to invest their retirement savings in their own business as well as alternative investments such as real estate, private companies, promissory notes, precious metals, tax liens and equities.
    Learn more

    Connect with us

  • We’re here to help.

    Call: 800-489-7571

    Monday-Friday

    8:00 am - 4:00 pm PT

    Why us?
MENU