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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?
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)).