Invest Solo 401k in a Certificate of Deposit

In addition to investing in equities (stock and mutual funds) as well a alternative investments (e.g., real estate, tax liens, notes and precious metals), as solo 401k plan may also be invested in a certificate of deposit.

If your solo 401k funds are held in a bank account and you wish to invest in a certificate of deposit,  the following steps apply when investing a certificate of deposit via your solo 401k plan:

  • Purchase the submitted deposit in the name of the solo 401(k);
  • Transfer the funds from the solo 401(k) bank account to the provider of the certificate of deposit;
  • To the extent that a tax identification number is requested, provide the employer identification number for solo 401(k);
  • Any interest/return on the investment in the certificate of deposit must be returned to the solo 401(k) account.
  • Note: Do not purchase an IRA CD as you are not investing via an IRA.

SOLO 401(K)

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