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
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.
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.
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:
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.
ROTH IRA Statement from Fidelity Representative QUESTION:
Processing Solo 401k Loan QUESTION:
Direct Rollover Check Question:
Deposit the check at Fidelity
ROTH 401k and After-Tax QUESTION:
Submit Solo 401k Contribution QUESTION:
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.