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The Solo 401(k) Plan – How it Works

How Does Solo 401(k) work

With IRA Financial Group, you no longer have to spend $2000 to $5,000 or more to set up your Solo 401(k) Plan or pay excessive administration fees. Work directly with our in-house tax and ERISA professionals to customize your Solo 401(k) Plan based on your investment and retirement goals.

We provide the following, all for one low price:

1. Establish your IRS Compliant Solo 401(k) Plan

  • Free tax consultation with our in-house tax and ERISA professionals
  • Adoption Agreement
  • Basic Plan Document
  • EGTRRA Amendment
  • Summary Plan Description
  • Trust Agreement
  • Appointment of Trustee
  • Beneficiary Designation
  • Loan Procedure
  • Loan Promissory Note
  • Free tax updates
  • Free tax and ERISA support
  • Satisfaction Guaranteed!

2. Tax-Free Transfer of Retirement Funds

Transfer retirement funds (IRA, SEP-IRA, 401(k), 403(b), etc.) tax-free from your current custodian to any financial institution or credit union who can serve as your custodian for no fee. Direct the current custodian to transfer the retirement funds to your new Solo 401(k) Plan bank account. This transfer, also called a direct rollover is tax-free. The retirement tax professionals at the IRA Financial Group will assist you in completing this task in an expedited and tax-free manner. With a Solo 401(k) Plan with “checkbook control” you no longer have to pay excessive custodian fees based on account value and transaction fees. Instead, with a “checkbook control” plan, you can use any local bank or credit union to serve as your custodian. By using a Solo 401(k) Plan with “checkbook control” you can take advantage of all the benefits of self-directing your retirement assets without incurring excessive custodian fees and custodian created delays.

IRA Financial Group will assist you in completing all the necessary custodian documents so your retirement funds are transferred to a local bank account established in the name of your 401(k) Plan quickly and without any tax.

3. Open Local Trust Bank Account

Open a local bank account for your Solo 401(k) Plan at any bank or credit union of your choice. Our in-house tax and ERISA professionals will guide you through the process.

4. “Checkbook Control”

As the trustee of the Solo 401(k) Plan, you will have the freedom to make all investment decisions for your plan (“Checkbook Control”). A Solo 401(k) plan allows you to eliminate the expense and delays associated with an IRA custodian, enabling you to act quickly when the right investment opportunity presents itself. As trustee of the plan, you will be able to write a check or wire money from the 401(k) bank account to make an Investment.

5. Tax-Free Investment is Made

The Investment is then made in the name of your Solo 401(k) account. As trustee and administrator of the plan, you will have “checkbook control” to make investments on behalf of your Solo 401(K) Plan.

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