Please check out this good question from our Daily Live Zoom call. Subscribe to our YouTube Channel to get notifications of our Daily FAQs.
QUESTION:
What is the purpose of the checkbook control for my Solo 401k?
RESPONSE:
Great question! One of the top use cases for our self-directed Solo 401k is the ability to invest in alternative investments, including real estate, private placements, notes, etc.
As part of the Solo 401k onboarding process, we help clients open accounts at the bank or brokerage of choice, including checking accounts at a bank or credit union as well as accounts at different brokerages (such as Fidelity or Schwab) where the brokerage provides free checkbook access to the brokerage account.
Checkbook access can be important to a Solo 401k owner/participant who’s looking to invest their Solo 401k funds in an alternative investment because now have such person will direct access to the funds and can act quickly to take advantage of an investment opportunity.
