BACKGROUND: Hi, I’m interested in setting up a checkbook 401k with you and Schwab as I have other accounts with Schwab. However, I contacted Schwab and they said that there is no checkbook option with them any more and that they only offer something called an Individual 401(k) that only allows for investments in public equities, funds, etc… and no ability to borrow, invest in real estate, private equity… all of things you suggest.
QUESTION: I don’t what to roll over my existing 401(k)s just to invest in public products so I want to make sure I understand what my current options are. If Schwab is no longer an option, what do you suggest?
ANSWER: You are not asking Schwab the right questions. If you don’t ask the right questions, you won’t get the right answers. Please call me to discuss. Essentially, you will open a brokerage account at Schwab for the solo 401k that we offer and it will have a check writing feature. This means that Schwab is not the solo 401k provider and thus is not responsible for the solo 401k reporting, alternative investments or solo 401k plan document updates.
Thanks,
Jong in Arizona
