Fidelity Solo 401k Brokerage Account from My Solo 401k Financial

A Fidelity Investments Solo 401k brokerage account with checkbook control from My Solo 401k Financial is ideal for those looking to still have the option to invest in equities while also gaining checkbook control over their retirement funds for investing in alternative investments such as real estate, notes, tax liens, and private shares  in addition to processing a solo 401k participant loan.

A Fidelity Investments Solo 401k with checkbook control allows for the following

Checkbook

Fund Solo 401k alternative investment purchases, e.g., real estate, precious metals, tax liens, promissory notes, private placements, etc. by writing checks from the Solo 401k Fidelity brokerage account.

Solo 401k Loan

After we prepare Solo 401k loan documents, process Solo 401k loan directly from the Solo 401k plan Fidelity brokerage account.

Brokerage

Continue to trade equities and grow your retirement funds tax-deferred, deposit investment gains from your Solo 401k’s alternative investment holdings (e.g., rent check proceeds from real estate) directly into your Solo 401k Fidelity brokerage account, and make your annual Solo 401k contributions directly into the brokerage account.

How it works

Fidelity is simply providing brokerage account for your Solo 401k, and My Solo 401k Financial is your Solo 401k provider. In other words, even though Fidelity also offers Solo 401k, their Solo 401k plan document restricts you to only investing in stocks and mutual funds; however, by using our Solo 401k document, which allows you to serve as trustee of the Solo 401k and invest in alternative investments such as real estate, precious metals, tax liens, promissory notes, private stock, etc., as well as process Solo 401k Loan, Fidelity is not involved in the administration of the Solo 401k.

Documents for Opening Fidelity Solo 401k Brokerage Account

To open Fidelity Solo 401k with checkbook control, you will need to submit My Solo 401k Financial Solo 401k plan documents, which we prepare in 24 hours, along with Fidelity’s special brokerage account forms and checkbook paperwork, which My Solo 401k Financial will fill out for you.

Fees Charged by Fidelity Investments

Because Fidelity is simply holding the funds in a brokerage account under the solo 401k offered by My Solo 401k Financial, the only fees that apply to the Fidelity brokerage account are:

Stock trading fees of $4.95 per trade; and

outgoing wire fees of $15.00 per wire.

Rollover Existing Fidelity Solo 401k/KEOGH/PSP: QUESTION:

Can I rollover the current equity investments held in my current solo 401k through Fidelity into as self-directed solo 401k with checkbook control for taking a 401k participant loan and for investing in alternative investments such as real estate, notes, liens, and metals, for example?  In other words, my new self-directed solo 401k would invest in the same Fidelity mutual funds initially before investing in real estate?  I presume Fidelity Investments would simply re-title my current investments.

ANSWER:

Yes your existing solo 401k with Fidelity Investments would get restated to our solo 401k plan which allows for 401k participant loans and investing in alternative investments such as real estate.  We would then fill out new Fidelity brokerage account forms so that Fidelity can open a new brokerage account for the self-directed solo 401k that we offer. Note that Fidelity will not simply re-title the existing account.  They require new brokerage forms. Subsequently, we would prepare an internal Fidelity transfer form to have Fidelity internally transfer the existing solo 401k equity holdings and cash to the new brokerage account for the self-directed solo 401k. You will then receive a checkbook in the mail from Fidelity for the new solo 401k for placing your alternative investments, and/or you can process the investments via wire.

Placing Real Estate Investment QUESTION:

I think I’m all set now with my Fidelity brokerage account for the self-directed solo 401k that you guys helped me to open. I deposited my rollover check with no issues. Also signed up for check writing and have received my checks in the mail yesterday.
Is there anything I would need to do before I just write a check for an investment? Eg. If I were to invest in some real estate deals.

 

ANSWER:

That is great news, and it sounds like the Fidelity brokerage account set up process went smoothly and now you can start investing your solo 401k in alternative investments such as real-estate.  Now you can place the real-estate investment by writing a check or by filling out the Fidelity outgoing wire directive, which we can fill out for you. Please see additional information regarding real estate procedures at the following link: https://www.mysolo401k.net/solo-401k/solo-401k-real-estate-investment-procedure/

ROTH IRA Statement from Fidelity Representative QUESTION:

Can you confirm whether this statement is true or not (from a Fidelity representative).
“The IRS does not allow Roth IRA money to be rolled into any 401(k) plan.  That is only allowed on pre-tax IRA and retirement accounts”.
I was hoping to roll over a Roth IRA into my Solo 401k Roth account.  Is that restricted?

ANSWER:

They are correct. Please see the following.
I suspect the IRS has placed such restriction because the distribution rules are different for a Roth IRA vs a Roth solo 401k.

Processing Solo 401k Loan QUESTION:

I received the rollover check from John Hancock for my former employer 401k and will go into the local Fidelity Investments office tomorrow to deposit the check into the new brokerage account that you helped me setup for the self-directed solo 401k that you provide.  I would like to make sure I understand the process to create a solo 401k participant loan against the balance.  I think you all create the paperwork.  What’s the method to move the loan amount from the fidelity account into my personal checking account.  Do I just use the fidelity transfer functionality, get a check drafted or ?.
Also, I will be rolling over an IRA account as well.  Am I limited to 1 loan or can I take out a second loan against the additional amount?

ANSWER:

We will prepare the solo 401k participant loan documents (not Fidelity Investments) since we are the solo 401k provider. We prepare the solo 401k loan documents in 24 hours. Click here for what we need to prepare the solo 401k loan documents. Once the transfer check has cleared, you can process the solo 401k loan by check (one you receive the checkbook in the mail for the new self-directed solo 401k that you opened with us), our you can process the solo 4o1k loan proceeds by using the Fidelity wire form to request funds be wired from your Solo 401k to your personal bank account for the Solo 401k Participant Loan.
Multiple solo 401k participant loans are allowed, but there are rules that apply. Please review this information on our website: https://www.mysolo401k.net/solo-401k-loan-limits/

Direct Rollover Check Question:

I received my direct rollover check from T. Rowe Price. Should I send the rollover check to you or directly to Fidelity once the Fidelity brokerage account for my self-directed solo 401k account has been opened?

Answer:

Since you have received your transfer check from T. Rowe Price, the next step is to deposit your transfer check into the Fidelity Non-Prototype account for the self-directed solo 401k.
Below are the steps to do so:

Deposit the check at Fidelity

Please write the Fidelity account number for your account that starts with the letter “Z” in the memo section of the check.
Please then take the check to your local Fidelity branch. You can find the nearest Fidelity branch using Fidelity’s online branch locator: http://www.fidelity.com/branchlocator/
Alternatively, you can mail the check to Fidelity Investments:Fidelity Investments 100 Crosby Parkway, Covington, KY 41015
If applicable, these will be the same instructions you will follow when you receive your transfer checks from other companies.

ROTH 401k and After-Tax QUESTION:

Now that I have opened my solo 401k with you guys (see attached signed forms), I would like to proceed with the Fidelity brokerage account with the checkbook control option. I will be making ROTH employer contributions and AFTER TAX contributions only. Is this okay?
ANSWER:
Correct that you are not required to make pre-tax solo 401k contributions but may do so at a later date.
We will provide two sets of Fidelity brokerage account forms tomorrow-one set for the Roth 401(k) funds in the second set for the after-tax 401k funds. Both brokerage accounts can be opened with a zero balance.

Also, once you fund the after-tax brokerage account, please let us know and we will email you the in-plan conversion procedure so that we can document the in-plan conversion of after-tax solo 4o1k funds to the Roth solo 401k and issue the required Form 1099-R to report the non-taxable conversion, so please make note of this.

Submit Solo 401k Contribution QUESTION:

Can I submit my solo 401k contributions to Fidelity Investments by check or by wire transfer?

ANSWER:

Once the Fidelity brokerage accounts have been opened, you can make the solo 401k contributions by check by going to your local Fidelity branch or by ACH or by wire. See the following. 

SOLO 401(K)

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