Solo 401k Advice Requested

[Sandra Regnell]

Hi 

I am setting up an LLC and transitioning over from W2 employment. I have a company 401k and an IRA.

I set up a Merrill Edge 401k which looks to be really expensive and not what I need. I set up a ubiquity solok but am stuck and cannot seem to figure out how to get the Charles Schwab form filled out to hold the funds. I called but there is literally NO support. It’s a new product and they don’t even know what to do. 

After wasting several hundred bucks, I’d like to find a solok that is reasonably priced with some support for setup and questions.

Should this be affiliated with my LLC? The funds are personal but I want to invest them in real estate. The LLC will be consulting but those profits will also be real estate.

Suggestions appreciated!

Thanks,

Sandra 

[Justin Windham]

@Sandra Regnell

We have heard similar stories from people looking to transition from Solo 401ks with no support from the plan provider. I believe ongoing support is very important to most Solo 401k participants.

If the LLC is the entity through which you generate earned income, then yes, that LLC would generally adopt the Solo 401k plan.

The Solo 401k can accept the funds from your former employer 401k plan and your IRA (as long as it is not a Roth IRA). These funds can then be used to invest into real estate or other assets of your choosing.

Are you familiar with the prohibited transaction rules? It is important to have an understanding of these rules, especially if your current provider doesn't offer meaningful support.