Checkbook Control 401k or Checkbook Control Solo 401k
Once you open a solo 401k that allows for investing in real estate as well as other alternative investments such as real estate, notes/trust deeds, precious metals and private shares, in order to start making solo 401k investments, a checking account for the solo 401k will need to be opened at a local bank. Since a checkbook control solo 401k is still a fairly new vehicle, many banks have not yet trained their staff on the solo 401k bank account process.
Multiple Solo 401k Checking Accounts More than one checking account is required if: -Both solo 401k participants will be contributing to the solo 401k -You plan to make both Roth Solo 401k and Traditional Solo 401k contributions -If both trustees/participants contribute to Roth and traditional solo 401k, 4 checking accounts are required, as you cannot commingle both types or both participants funds.
Titling Checking Account and EIN Since the checking account(s) is for the solo 401k, do not open the checking account under your name only. Instead, open it under the name of solo 401k. For example, Julie Scott has a solo 401k titled Nice Buildings Solo 401k Plan. Therefore, Julie would need to make sure to open the solo 401k checking account under following name: Nice Building Solo 401k Plan, Julie Scott, Trustee. When opening the solo 401k bank account(s), maker sure to also use the solo 401k EIN (employer identification number) for solo 401k reporting not your social security number or business EIN/TIN, as not doing so may result in incorrect reporting by the bank.
Solo 401k Documents To open the solo 4012k checking account(s), the following solo 401k documents, which are drafted by solo 401k provider, are required: 1.Executed solo 401k Adoption Agreement; and 2. Trust Agreement/Plan Document
Bank's Role The bank's role in the solo 401k checking account process is very simple. The bank is only providing a checking account not a solo 401k. As such, you as the administrator and trustee of the solo 401k plan in conjunction with your solo 401k provider are the ones that administer the solo 401k plan not the bank. Also, the bank does not issue tax forms, file annual Form 5500 EZ, prepare transfer/rollover forms, or issues Solo 401k loan documents. More Information Solo 401k Loan Brokerage vs. Bank Account Solo 401k Funding Methods