Solo 401k Plan Document

The Self-Directed Solo 401k Plan Documents

The solo 401k plan document will dictate what the self-employed business owner can and cannot do with her solo 401k retirement funds. The solo 401k plan document provider indirectly determines the features available under the solo 401k plan. Therefore, before opening a solo 401k for your self-employed business, first determine what you plan to do with your solo 401k plan.

Just because you want to defer part of your salary into a Roth doesn’t mean the plan is required to offer a designated Roth account. Not all plans allow for Roth solo 401k contributions or voluntary after-tax contributions, for example. Also, not all solo 401k plan allows for participant loans or for investing in alternative investments.

When you are ready to open Solo 401k with checkbook control that allows for investing in alternative investments such as real estate, precious metals (gold, silver), tax liens, trust deeds (notes) , as well as borrow from the solo 401k for any purpose through a solo 401k participant loan, My Solo 401k Financial will take care of the solo 401k establishment process from beginning to end.

As a Solo 401k Provider, My Solo 401k Financial offers one of the best priced self-directed solo 401k plans in the industry.

The 401k Plan Document

Solo 401k plans, like all qualified retirement plans, must be in writing. The written plan requirement means that a 401k plan must be embodied in a formal plan document.

Following is list of the IRS Approved Solo 401k Plan Documents and Solo 401k Loan Documents that are prepared by My solo 401k Financial

Adoption Agreement

Lists options for the individual plan sponsor. Common options include minimum age and service conditions for becoming a Participant, normal retirement age, excluded employees, etc. My Solo 401k Financial Compliance Officer will review the adoption agreement with you to ensure it is structured to your needs.

Basic Plan Document

The Basic Plan document is the Prototype Plan and Trust document that sets forth the rules of the Solo 401k Plan including types of investments that Solo 401k may be invested in, Solo 401k Loan Rules, distribution rules, etc. My Solo 401k Financial Compliance Officer is always available to answer questions and assist you in understanding the Solo 401k plan rules.

EGTRRA  & PPA Amendments

This Prototype Plan includes updates stemming from the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) and Pension Protection Act.

The Summary Plan Description

Summarizes the important features of the Plan document, including your benefits and obligations under the Plan. My Solo 401k Financial Compliance Officer will review the Summary Plan Description document with you so that you have a full understanding of all the provisions of the Solo 401k Plan.

Summary Plan Description

Document that outlines the administrative provisions of the plan including naming you as trustee of the plan. My Solo 401k Financial Compliance Officer will review the Summary Plan Description with you to answer any questions that you may have.

Trust Agreement

The Trust Agreement embedded in the Basic Plan documents contains the responsibilities and duties of the trustee. My Solo 401k Financial Compliance Officer will review the Trust Agreement with you to answer any current and ongoing questions that you may have.

Appointment of Trustee

The Adoption Agreement is used to appoint the individual (generally the business owner) who will serve as trustee of the Solo 401k. My Solo 401k Financial Compliance Officer is always available to explain the role of the Trustee(s).

Beneficiary Designation

As part of the Solo 401k opening process, you will need to elect primary and contingent beneficiaries of your Solo 401k. A My Solo 401k Financial Compliance professional is always available to explain the beneficiary rules.

Loan Procedure

Embedded in The Basic Plan Document, you will have access to Participant Loan from your Solo 401k Plan. The minimum loan amount is $1,000 and the maximum is 50% of Solo 401k account value not to exceed $50,000. A My Solo 401k Financial Compliance professional will explain the Solo 401k Participant Loan rules.

Loan Documentation

A My Solo 401k Financial Compliance professional will prepare Loan Application, Lending Disclosure Statement, Loan Agreement and Loan Amortization Schedule for all your Participant Loans at no additional charge.

Transfer Request Forms

My Solo401k Financial will prepare transfer forms for transferring your IRAs and other qualified plans to your newly established Solo 401k Plan while preserving their tax-deferred status.

Newly assigned Employer Identification Number from the IRS

A My Solo401k Financial Compliance professional will walk you through the process of obtaining EIN directly from the IRS website which can be obtained in a matter of minutes.

IRS Determination Letter

This letter is issued by the National Office of the IRS and it states that this is a Prototype Plan that meets the requirements of a qualified plan. My Solo401k Financial provides copy of IRS Determination Letter to all new clients.

How Do I Get Started?

Contact My Solo 401k Financial at 1-800-489-7571 for free consultation or, if you are ready to proceed, visit our sign-up page by clicking on Open Solo 401k. Once we receive the required information, we will establish Solo 401k in 24 hours.

Plan Document QUESTION:

I found your contact information from your website. I have a solo 401 K with Merrill Lynch. They do not have a plan document to attach to the 401 (K). Is it necessary to have a plan document in order to take advantage of tax deferred contributions?


If you have a solo 401k plan with  Merrill Lynch   already then you already have a solo 401k plan document as that is the cornerstone of the solo 401k setup.

Draft Plan Document to Allow for Immediate Distributions  QUESTION:

Can the solo 401k plan document be drafted to allow immediate distributions of annual solo 401k contributions?


While profit sharing employer contributions, regardless of the participant’s age, can be distributed at anytime after they have been in the plan for 2 years or if the solo 401k plan has been opened for 5 years, the same rule does not apply to employee contributions (elective deferrals). In order to be able to distribute employee contributions, the solo 401k participant must be age 59 1/2 or older. As a result, the owner-only business cannot elect in its solo 401k plan document to allow an in-service distribution of employee elective deferrals before age 59½.

Participant Signature QUESTION:

I do not see where in the plan establishment documets it shows me as the participant of the plan and my percentage of interest in the solo 401k plan.
If this is oversight by me please direct me to  the section that this can be found in the trust agreement as the Crypto company is asking for it.


With a solo 401k plan, the trustee and the participant are one in the same.
Even though the “participant” language is used through the solo 401k establishment documents including the Trust Agreement, participants don’t sign any of the 401k plan’s establishment documents including the Trust Agreement. Instead, the trustee signs the establishment documents.
This is standard for all 401k plans (e.g., full-time employer 401k plan and self-employed solo 401k plans).
However, since the trustee and participant are the same, we can certainly edit the Trust Agreement to also list you as a participant if the crypto company is requiring it as this would not void the solo 401k plan from being qualified.

Solo 401k Plan Fiduciary QUESTION:

Who is the “Investment Fiduciary” for my solo 401k plan?


The self-employed business owner is the fiduciary of the solo 401k plan just like he or she is the trustee and the administrator. A Fiduciary is a person responsible for acting in the best interest of the solo 401k plan. As the Trustee, owner of the plan, the business owner looks after the assets of the plan and invests the plan’s funds.  You direct the investments, decide where the plan will hold its funds, etc. You do not need any licenses to hold this title.

SOLO 401(K)