Menu Close

Setting Up a Solo 401(k) Plan

When looking to establish a solo 401(k) Plan it is imperative that one works with tax and ERISA experts who understands the rules and regulations surrounding the adoption, maintenance.

With IRA Financial Group, you will work directly with tax attorneys and CPAs to help establish your IRS compliant solo 401(k) Plan.

The Solo 401(k) plan is unique and so popular because it is designed explicitly for small, owner-only business. It’s a tax efficient and cost effective plan that offers all the benefits of a Self-Directed IRA plan, and includes additional benefits. There are many features of the solo 401(k) plan that make it so appealing and popular among self-employed business owners.

Establishing a Solo 401K Plan
Establishing a Solo 401K Plan

1. Establish your IRS Compliant Solo 401(k) Plan: Establishing a solo 401(k) Plan involves the drafting of the following documents. The tax professionals at the IRA Financial Group will help you customize your plan based on your investment, tax, and retirement goals.

  • 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” Solo 401(k) 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 Solo 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. You will have the ability to open a pre-tax and/or Roth account for your solo 401(k) plan.

4. “Checkbook Control” – As the trustee of the Solo 401(k) Plan, you will have the freedom to make all investment decisions for your Solo 401(k) Plan. IRA Financial Group’s solo 401(k) plan is an open architecture and trustee directed plan that will allow you as the trustee of the solo 401(k) plan to make investments by simply writing a check. 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 Solo 401(k) 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 Solo 401(k) Plan, you will have “checkbook control” to make investments, such as real estate, precious metals, hard money lending, private business investments, and stocks on behalf of your solo 401(k) plan.

To learn more about how to set-up a solo 401(k) plan, please contact a tax professional at 800-472-0646 or visit

Share the knowledge
Posted in Solo 401(k)