Solo 401k integrate with social security?

Question

Hey Guys,

I am very new to solo 401k and I wanted to get started on it. There is an option where it asks me if I wanted to integrate this solo 401k with social security. I can't seem to understand the intention of this question... what benefit do I get to integrate with social security? and why would anyone want to do that? how does integrate with social security affect 401k?

I can't seem to understand what is the relationship between solo 401k with social security at all. If someone can help me understand this, it would be a tremendous help for me to move forward with solo 401k.

Helen Z

Dmitriy Fomichenko · Answer

Also, the loan is taken from the account, not against it. It seems that Fidelity plan does not have a loan provision.

How about investing: how do you wish to invest 401k funds? With Fidelity 401k plan you will be limited only to Fidelity investment offerings, to invest in real estate and other alternative investments you need truly self-directed Solo 401k plan. Here is a good discussion on the topic which you may find helpful:

https://www.biggerpockets.com/...

Dmitriy Fomichenko · Answer

You are welcome @Helen Zhang, it's my pleasure!

Helen Zhang · Answer

You are truly an asset to biggerpockets @Dmitriy Fomichenko

Dmitriy Fomichenko · Answer

@Helen Zhang, their explanation is pretty clear: it does not apply to your situation:

Social Security Integration (permitted disparity) is designed for multi-participant plans and is not generally appropriate for a Self-Employed 401(k) Retirement Plan, self-employed individuals, or owner-only businesses.

Helen Zhang · Answer

@Dimitriy, Thank you for taking the time to read through my question.

Yes, that is correct. No full-time employees. The reason why I am doing solo 401k is for the following reason:

1. defer more taxes by contribute as an employer as well as employee

2. able to borrow against my own solo 401k account and pay myself interest

Embarrassingly I am stuck with a few questions to open this solo 401k account. I do not like mystery, and I would rather understand every single question on the paperwork before I open the account. The question that I am stuck on without full understanding is #5: https://www.fidelity.com/bin-p...

Dmitriy Fomichenko · Answer

@Helen Zhang

First, to qualify for a Solo 401k you must have legitimate self-employment activity or business, and no full time employees. Are you eligible?

You say "there is an option where it asks me"... Where is there? What exactly are you referring to?

Solo 401k integrate with social security?

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