QUESTION 1: I have about $40,000 in a 401K from a previous employer at Vanguard, can this be used to fund/moved to a Solo 401K without incurring any penalties or taxes during the move?
ANSWER: Yes provided you are self-employed, the Vanguard 401k can be transferred to the solo 401k without any tax consequences.
QUESTION 2: If I want to do a checkbook account, do I have to use a local bank or can that be done completely with a brokerage account?
ANSWER: The solo 401k can be opened at the local bank or at brokerage firm.
QUESTION 3: I see that you have links for ETrade and Ameritrade, do you know if TradeKing has acceptable account types or have you worked with them before?
ANSWER: We are not aware of Trade king offering this service, but you can check with them by asking if they can setup a trust brokerage account with a checkbook feature.
QUESTION 4: If I have the account at a brokerage, can I still do a loan out of the 401K, and who/how is that paid back, do I just put the money back in the account each month?
ANSWER: Yes the solo 401k allows for participant loans and thus the loan may be processed out of the brokerage account after we prepare the solo 401k loan documents. Click here to learn more about the solo 401k loan process.
Thanks,
Jerry in Washington
ANSWER: Yes provided you are self-employed, the Vanguard 401k can be transferred to the solo 401k without any tax consequences.
QUESTION 2: If I want to do a checkbook account, do I have to use a local bank or can that be done completely with a brokerage account?
ANSWER: The solo 401k can be opened at the local bank or at brokerage firm.
QUESTION 3: I see that you have links for ETrade and Ameritrade, do you know if TradeKing has acceptable account types or have you worked with them before?
ANSWER: We are not aware of Trade king offering this service, but you can check with them by asking if they can setup a trust brokerage account with a checkbook feature.
QUESTION 4: If I have the account at a brokerage, can I still do a loan out of the 401K, and who/how is that paid back, do I just put the money back in the account each month?
ANSWER: Yes the solo 401k allows for participant loans and thus the loan may be processed out of the brokerage account after we prepare the solo 401k loan documents. Click here to learn more about the solo 401k loan process.
Thanks,
Jerry in Washington
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