Types of Solo 401k Providers
Various types of Solo 401k Providers exist, all offering same Solo 401k in that the 401k is a qualified plan that has been reviewed and approved by the Internal Revenue Service (IRS).
The differences in services offered by Solo 401k Provider, however, come into play with respect to:
Therefore, it's important that, in addition to determining how complex of a Solo 401k you want to adopt, to also determine which Solo 401k provider offers the best Solo 401k for your needs before proceeding to Open Solo 401k. The types of Solo 401k providers are discussed below.
Types of Solo 401k Providers
Brokerage Firms: Examples are TD Ameritrade, Vanguard, Fidelity and Charles Schwab .
These brokerage firms offer Solo 401k but their Solo 401k restricts you from directing the Solo 401k in investing in alternative investments, such as real estate and precious metals. Further, some of them do not allow for Solo 401k participant loan. Their fees appear minimal on the surface, but often hidden fees exist because they are deducted from the net asset value of the mutual fund. Lastly, these firms often referred to their self-employed 401k as Individual 401k.
Self-Directed Custodians: Examples include Pensco Trust, Equity Trust and Entrust. These companies commonly refer to Solo 401k as Solo K or Individual K. They allow Solo 401k to be invested in alternative investments but charge various fees, such as holding, processing and annual fees ranging from a few hundred dollars to over $1,000. Further, all investment purchases are processed by the custodian so investment paperwork has to be submitted for their review and funding which can often take days or weeks to fund the investment.
Solo 401k Facilitators/Administrators: Example is MySolo401k.net. They offer Solo 401k for investing in alternative assets such as real estate, tax liens, trust deeds, precious metals, etc, but with a twist. They offer Solo 401k Checkbook Control. This means that as trustee of the Solo 401k Plan, you make investments by simply writing a check form the Solo 401k checking account.
ADDITIONAL INFORMATION
Open a Solo 401k
Solo 401k Do's and Don'ts
The differences in services offered by Solo 401k Provider, however, come into play with respect to:
- Investment types that the Solo 401k plan may be invested in,
- types of fees charged by the Solo 401k Provider,
- whether or not the self-employed business owner is the trustee thus allowing him or her to trustee her own investments, and
- whether or not the Solo 401k provider will allow or administer Solo 401k participant loans.
Therefore, it's important that, in addition to determining how complex of a Solo 401k you want to adopt, to also determine which Solo 401k provider offers the best Solo 401k for your needs before proceeding to Open Solo 401k. The types of Solo 401k providers are discussed below.
Types of Solo 401k Providers
Brokerage Firms: Examples are TD Ameritrade, Vanguard, Fidelity and Charles Schwab .
These brokerage firms offer Solo 401k but their Solo 401k restricts you from directing the Solo 401k in investing in alternative investments, such as real estate and precious metals. Further, some of them do not allow for Solo 401k participant loan. Their fees appear minimal on the surface, but often hidden fees exist because they are deducted from the net asset value of the mutual fund. Lastly, these firms often referred to their self-employed 401k as Individual 401k.
Self-Directed Custodians: Examples include Pensco Trust, Equity Trust and Entrust. These companies commonly refer to Solo 401k as Solo K or Individual K. They allow Solo 401k to be invested in alternative investments but charge various fees, such as holding, processing and annual fees ranging from a few hundred dollars to over $1,000. Further, all investment purchases are processed by the custodian so investment paperwork has to be submitted for their review and funding which can often take days or weeks to fund the investment.
Solo 401k Facilitators/Administrators: Example is MySolo401k.net. They offer Solo 401k for investing in alternative assets such as real estate, tax liens, trust deeds, precious metals, etc, but with a twist. They offer Solo 401k Checkbook Control. This means that as trustee of the Solo 401k Plan, you make investments by simply writing a check form the Solo 401k checking account.
ADDITIONAL INFORMATION
Open a Solo 401k
Solo 401k Do's and Don'ts