When you get started with Tastytrade online application, make sure you select Trust and Cash account.
- Make sure to provide the name of the solo 401k plan that you opened through My Solo 401k Financial and also provide the employer identification (EIN) for the solo 401k plan.
- When prompted for Grantor information, please enter your personal information since you are the participant and trustee of the solo 401k plan.
Our records show that in addition to the solo 401k establishment documents, Tastytrade may request a Certification of Trust. If they do, we will also provide it and it will need to be notarized.
Considerations when investing options subject to margin “naked options” “non-defined risk options”:
1. The ability to invest in options generally is already addressed in Section 3.01 of the Trust Agreement for the solo 401k plan.
2. Another factor to consider with respect to “naked margins” specifically is that the account has the potential to go negative. In that case, you may have no ability to deposit additional funds into the Solo 401k – for example, if you have already maxed out your contributions & don’t have any funds in other retirement accounts to roll over to the Solo 401k.
3. Another factor to consider is whether investing in margin will subject your investment to Unrelated Business Income Tax: https://www.mysolo401k.
