Solo 401k Expense Types an Paying Self-Directed Solo 401k Expenses

Identifiable Costs - expenses in connection with establishing and administering the solo 401k plan, such as:

• Solo 401k setup costs
• Annual maintenance fees
• compliance
• Financial Consulting
• Audits

Paying identifiable costs: both solo 401k and personal or business funds can be used to pay identifiable costs. The drawback of using solo 401k funds instead of personal or business funds is that it reduces the amount of solo 401k funds available for placing investments.

Solo 401k Investment Costs–for example, expenses in connection with alternative investments such as real estate including the following:

• Broker fees
• Property taxes
• Repairs/Improvements 
• Insurance
• HOA dues

Paying solo 401k investment costs: this type of fee is paid with solo 401k funds not personal or business funds.

Expenses that Cannot be Paid Using Solo 401k Plan Funds

Travel, Lodging, Boarding, car insurance, car payments, education, training, membership fees, and stock traders association fees, to name a few.

To learn more about various solo 401k plan fees, click here.