Solo 401k Setup Guide

Step by step guide

Step 1 – Open Your Solo 401k

Our Solo 401k platform is a dream come true for the modern Self-Directed Investor. Our platform is the only one in the world of its kind that combines the strengths of both 401k and IRA accounts and solves the weaknesses. Your Investments can be self-directed and there is no need to hire, pay, and wait for a custodian to hold your assets. You get “Checkbook Access” built-in, without the need to register any LLCs. Your Solo 401k is exempt from taxation on debt leveraged real estate investments. You will never have a third party deny you from investing in a legally compliant investment (which happens with custodians). There are no transaction fees or asset fees, ever.

Your Solo 401k can include additional Unlimited® sub-accounts for your spouse as well—Tax deferred and Roth. You can borrow up to $50,000 from your Solo 401k funds tax-free for any reason. Your spouse, if named as a participant, can also have unlimited rollovers received that can be self-directed into alternative investments. Every Solo 401k includes a Roth 401(k) subaccount for you and one for your spouse, even if you make too much money to be allowed to contribute to a Roth IRA.

Step 2 – Fund Your Solo 401k

After opening your plan, your next step is to fund your Solo 401k. There are two ways to get started:

  • Rollovers
  • Contributions

If you are funding via rollover, your current custodian will mail you a check, payable to your Solo 401k trust.

Starting instead with contributions?

Click here to complete a contribution form. Contributions can be pre-tax (tax-deductible) or Roth. Remember, contributions are based on compensation you receive from your business.

Use our contribution calculator to determine how much you can contribute. Always work with your CPA to ensure your contribution calculations are correct based on your unique situation.

Next, you’ll want to open a bank or brokerage account (or both).  Our upcoming email will have recommendations to make the account opening process easy for you.

Step 3 – Open a Bank or Brokerage Account for Your 401k Funds

Now that you have funded our next step is to open an account to deposit Solo 401k funds. We recommend a bank or brokerage account, or both.

Bank accounts:

A Solo 401k bank account is simply a (business) trust checking account. However, not all banks are familiar with or supportive of a self-directed Solo 401k plan.

Fortunately, we have bank recommendations to make the account opening process easy.  We are not affiliated with any bank or brokerage firm, but aim to make the process as simple as possible so you can get to the fun part – investing and growing your Solo 401k.

Click here to see our bank account recommendations.

Brokerage accounts:

Opening a brokerage account for your Solo 401k allows you to invest in traditional equities like stocks, bonds, and funds. Our Knowledge Base has several articles on how to open investment accounts with the top brokerage firms, including SchwabFidelityE-tradeVanguard, and more.

Click here to learn more about opening a brokerage account for your Solo 401k.

Step 4 – Start Investing With Your Solo 401k

You might already have a plan on how you want to invest with your Solo 401k. But if you don’t, you’re not alone!

Lots of new self-directed investors look for ideas on how to invest retirement funds.

To help make things easier, we wanted to share a great resource with you: 
What Can a Solo 401k Invest in?

You’ll see a non-exhaustive list of different investments to consider for your own retirement plan.

Need help implementing your investment ideas? Post your question to our Facebook group and we’ll be here to help any way we can.

Step 5 – Review The Top 10 Resources for Your Solo 401k

We’re here to help you use your Solo 401k powerfully. That’s why today we’re sharing a list of our Top 10 Links for new Solo 401k account holders.

To keep things  simple, we’ve divided these links into 3 categories: Funding, Investing, and Participant Loans.

Funding: Rollovers and big tax deductible contributions

1. Initiate a rollover

2. Contribution Basics

3. Contribution Calculator

4. Open a Bank account

5. Open a brokerage account

Investing: Get the most out of investing your 401k funds

6. What can the Solo 401k Invest in?

7. Titling Real Estate in the Solo 401k

8. How to Buy Bitcoin

Participant Loan: Borrow money tax-free

9. What is a participant loan?

10. Create participant loan documents