QUESTION 1: If I open a solo 401k, I am inclined towards not using words solo 401k in the name because of my relations with various investors which may impact returns (hard to explain). It seems like the paper work will support that the trust is a Solo 401k with the bank. I would prefer to go this route unless you really insist because it could cause other hardships down the road.
ANSWER: The IRS Solo 401k rules per se do not specify that a solo 401k must be named or titled a certain way.
Common names for solo 401k include the following:
Using Company Name: For example, Construction Management Retirement Trust; Construction Management Solo 401k Retirement Trust; Construction Management Solo 401k
If sole proprietor and doing business under your name: For example, John Retirement Trust; John Solo 401k Trust; John Smith Solo 401k
QUESTION 2: Secondly, as per my conversation on the phone, currently my SEP-IRA has been set up with a checkbook LLC. This I started in 2012 and have already spent money in initial setup etc. When I close the SEP-IRA account, I would like to transfer stock owned in checkbook LLC in kind from SEP-IRA to the new solo 401k trust, so the investments can remain with the LLC. This will have no impact to my investments since for them the company name has remained the same and there is no change in paper work. Gradually I will start having investments directly from the solo 401k trust account and at that point, I can go ahead and close the LLC. While talking to you on the phone about this, this won’t be a problem, but would appreciate if you can confirm this once again.
ANSWER: As long as the SEP IRA transfer/rollover rules are followed, the IRS transfer/rollover rules allow for the movement of SEP IRA assets, including LLC holdings, to a Solo 401k plan. This was made possible by the passage of The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) which enhanced the IRA and retirement plan portability rules. The prior law made it difficult to move retirement plan assets between plans.
Josh P. in Arizona