Solo 401K set up - What is the best route?

9 Replies

Hi All,

I'm a new investor and wanted to leverage my 401K money in Fidelity for my upcoming investment deals. It's not much but I think I can better utilize and grow this fund in this industry.

Can you please provide me on how I go about setting up my solo 401K? Is setting up the account something I can do myself or best to ask a professional?

Thank you for your input.


Note:  I have no affiliation with the company that I'm about to mention other than being a customer.  I don't get any discount for saying anything positive about them.  I have not been prodded in any way to say anything about them at all.

I used to set mine up and Mark Nolan from there walked me through the process.  I couldn't be any happier.  He's a frequent poster on this site.

Pick a company who holds them (fidelity isn't the best option they don't allow loans from them.)

You may consider being your own administrator. 

@Esmeraldo Manubay

You will need to adopt a solo 401k plan from a solo 401k provider. Some solo 401k providers can even assist you in keeping your money at Fidelity an gaining checkbook control over the funds which will allow you to invest in real estate through the Fidelity brokerage account. You will also be able to get a non-recourse loan for the solo 401k for your leveraged deals. See following bigger pockets post which discuss the how the self-directed solo 401k brokerage account using Fidelity works.

Hi @Esmeraldo Manubay , and welcome. You'll need a company who can provide you with Solo 401k documents that your business or self-employment activity can adopt. With the right documents you can have the option to either borrow funds from the Solo 401k to use personally or invest the Solo 401k funds directly into real estate as others have alluded to.

Thank you all for your helpful comments. It appears based on my short research that Solo 401K is better than a Self Directed IRA for my situation.

If you are currently still employed by the company sponsoring your 401(k), you'll need to check with your plan administrator to see if your plan allows for in-service distributions, if you plan to roll the money over to a new Solo(k).

Thank you @Mindy Jensen for tagging me. Esmeraldo actually reached out to me last week and we had a nice conversation on Monday. But again, I appreciate the mention!

Thank you all for helping out. 

I currently don't have work right now so this is perfect. 

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