Accountant · New York, NY · Member since 2009 · 24 posts · 4 votes
Hi,
I am looking to move IRA money into a Solo 401K with checkbook control. For now most of the funds will go into real estate partnersips but eventually I may move some into direct real estate.
Does anyone have any direct experience with mysolo401k.net? Their fees seem to be the most reasonable of all. $595 setup and $125 annual. Would be great to hear of people's experiences both positive and negative.
Lender · Baltimore, MD · Member since 2015 · 100 posts · 30 votes
8y
I used mysolo401K to set up my plan. I have been extremely impressed with them. They have been easy to work with and have always answered my questions promptly, provided ongoing service (after I set up the plan) and helped me to get an EIN for my trust. They walked me through what to tell the bank when setting up an account, etc. Based on my experience, I highly recommend them as the quality and level of service I have received has been excellent!
Accountant · New York, NY · Member since 2009 · 24 posts · 4 votes
8y
No separate entity is necessary. It's all under the construct of the Trust and MySolo401k provides all the required paperwork for the trust (I forget if you have to obtain an EIN, but it is no big deal). They may do it. Too many years ago to remember. Maybe they do it, but will charge (I am a CPA so comfortable with certain items other people may not be).
The purpose of the brokerage account is to invest in equities since the bank account would not allow for it. TD Ameritrade also offers a brokerage account fora self-directed solo 401k that comes with a checkbook for investing in alternative investments such as real estate.
Santa Clara, CA · Member since 2013 · 5 posts · 1 vote
8y
Hi,
Anyone one in the bay area, who would recommend a local contact in Wells Fargo to open the business checking account for my self-administered solo 401k?
Lender · Baltimore, MD · Member since 2015 · 100 posts · 30 votes
8y
I used mysolo401K to set up my plan. I have been extremely impressed with them. They have been easy to work with and have always answered my questions promptly, provided ongoing service (after I set up the plan) and helped me to get an EIN for my trust. They walked me through what to tell the bank when setting up an account, etc. Based on my experience, I highly recommend them as the quality and level of service I have received has been excellent!
Rental Property Investor · Charlotte, NC · Member since 2017 · 298 posts · 232 votes
8y
@David S. have you ever had the need or desire to sell any market based investments in your brokerage account to free up funds for other types of investments? If so, how quickly were those funds available to you in the account? I'm asking because I have funds in a 401k from a prior employer that I want to rollover to a SD Solo-k but not quite ready to start buying RE and don't want to have it sitting earning nothing as I'm currently averaging 13% ROI with 12 month returns as high as 20%; however, it would be nice to have the funds positioned so I can access them quickly if I need to pull the trigger on a deal.
What you can do is rollover your previous employer 401k into Solo 401k, open a brokerage account under your Solo 401k and invest in the market. You can pick the same investments as you currently have with your 401k. This way all the funds will be underneath of your Solo 401k umbrella in the brokerage account. When you come across right investment opportunity you can sell your holdings (this typically takes one business day) and have funds available to deploy into another investment next business day.
Keep in mind however the risk of being in the market. If the market make a dive and you will need the capital at that time - you will be forced to sell at a loss. This is the risk of being in the market. You should do fine long term, but for the short term you may want to consider something more conservative.
That's a pretty common practice. How long it takes can vary from one brokerage firm to another, but in general, it's fairly quick. If you have enough funds in your Solo 401k checking account for an earnest money deposit, that can allow you to act immediately.
Rental Property Investor · Charlotte, NC · Member since 2017 · 298 posts · 232 votes
8y
@Dmitriy Fomichenko I definitely understand the risk of being in the market which is why I want to shift away from the market long term. Short term I need to learn a little more and develop a game plan for tenant screening, property management, and even potential lending from the account. PM me so we can talk more please.