Transfer my IRA to a self-directed 401k for a realtor to invest in real estate

I am a realtor working with a real estate brokerage firm.  Currently I
have a traditional IRA account with Charles Schwab.  I am considering to
open a self-directed solo 401K account and transfer my retirement fund
to solo 401K, so I can invest real estate.  I have a few questions
below, can you kindly help me out?

QUESTION 1. Will I be eligible to open a self-directed solo 401K account?

ANSWER: Realtors usually qualify for setting up a solo 401k provided they are not members of a controlled group.

QUESTION 2. Can I open an account (self-directed solo 401K) with Charles Schwab?

ANSWER: Yes as long as your use the solo 401k plan documents from a solo 401k provider such as whose 401k plan document has been reviewed by the IRS.

QUESTION 3. Will I still able to keep the solo 401K account and have annual
contribution to the account if I am not self-employment anymore in the

ANSWER: No as once self-employment ceases the IRS requires the solo 401k plan closed and its assets transferred to an IRA or another employer 401k.  Also, a final Form 5500-EZ must be filed as well as a 1099R.


John S. in  Idaho

About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>


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