QUESTION: How long will it take to open a solo 401k account? Will I need anything extra set up to write checks from the Solo K account for real estate purchases & re-hab costs? (Like an AZ LLC set up such as I have with my 2 IRA accounts.)
Sincerely, GS
ANSWER: It generally take 24 hours to prepare the solo 401k plan documents. Setting up the solo 401k bank account can take as little as 3 hours if opened through your local bank. The transfer of IRAs or other former employer plans to the newly established solo 401k plan can take anywhere from 3 to 10 days depending on the institution releasing the funds. Once the account is funded, you can immediately begin investing your solo 401k in real estate including rehabs and fixer-uppers.
Lastly, unlike an IRA that requires the use of an LLC to gain checkbook control over your retirement funds, because you would be named as the trustee of the solo 401k plan, you can gain checkbook control over your retirement funds without the use of an LLC.
