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Using Charles Schwab with Your Solo 401k Plan

IRA Financial Group, the leading provider of Self-Directed Solo 401(k) Plans, and Charles Schwab have worked together to allow IRA Financial Group Solo 401(k) clients to establish a Checkbook Control Solo 401(k) Plan account with Charles Schwab with no custodian fees.

IRA Financial Group clients will be able to use IRA Financial Group’s IRS approved Self-Directed Solo 401(k) Plan and open the plan account at Charles Schwab, as well as other partners, such as Fidelity, E-Trade, and Wells Fargo. With IRA Financial Group’s Self-Directed Solo 401(k) Plan at Charles Schwab, you will be able to make traditional investments, such as stocks, as well as alternative asset investments, such as real estate, precious metals, hard money loans, tax liens, private business investments, and much more and incur NO custodian fees. IRA Financial Group’s IRS approved Solo 401(k) Plan is an open architecture trustee directed plan allowing you, as the trustee of the plan, to have Checkbook Control over your plan funds directly from your Schwab account and incur no custodian fees.

The IRA Financial Group Difference

By working with IRA Financial Group to establish your Self-Directed Solo 401(k) Plan, you will gain the ability to make high annual 401(k) plan contributions, up to $53,000 ($59,000 if over the age of 50) in pre-tax, Roth, or after-tax, have a loan option, and gain the ability to make traditional as well as alternative asset investments, such as real estate. Whereas, if you adopted a Solo 401(k) Plan sponsored by Charles Schwab you would only be able to make pre-tax contributions, no Roth or after-tax contribution option, there would be no loan feature, and you would be only allowed to make traditional investments offered by Schwab, such as mutual funds, and no real estate or other alternative asset investments would be permitted. So how is this possible?

With a Solo 401(k) Plan, the plan documents set forth the rules governing your Solo 401(k) Plan. IRA Financial Group’s Solo 401(k) Plan documents are open architecture trustee directed and not custodian directed giving you, as the trustee of the plan, Checkbook Control over the plan and its assets. IRA Financial Group would be the Solo 401(k) Plan document sponsor and Charles Schwab would be your 401(k) plan custodian, giving you the power to have Checkbook Control over your plan assets and make traditional as well as alternative asset investments. Using IRA Financial Group’s plan documents will allow you to take advantage of a special type of non-prototype plan account offered by Schwab.

Unlike an IRA where the IRA custodian has specific IRS reporting requirements, with a 401(k) plan the custodian (Schwab) has no IRS reporting requirements, since you as the plan administrator would be responsible for any IRS reporting, such as filing the IRS Form 5500-EZ (if your plan assets are greater than $250,000). This is the reason Charles Schwab will allow you to open your Solo 401(k) Plan account with them and make alternative asset investments using a special type of non-prototype account and not with an IRA, since the 401(k) plan custodian would have no IRS reporting requirements with a trustee directed Solo 401(k) Plan using IRA Financial Group plan documents.

IRA Financial Group has developed a relationship with Charles Schwab in order to allow you to open a Self-Directed Checkbook Control Solo 401(k) Plan with no custodian fees. Your IRA Financial Group assigned retirement tax specialist will assist you in opening your new Self-Directed Solo 401(k) Plan at Schwab or any other financial institution of your choice quickly. Using IRA Financial Group’s plan documents will allow you to take advantage of a special type of non-prototype 401(k) plan account offered by Schwab allowing you to make traditional as well as alternative asset investments, such as real estate, as the trustee of the plan – with full Checkbook Control. The process for establishing a Self-Directed Solo 401(k) Plan with IRA Financial Group and Charles Schwab can be completed in days:

  1. Complete a short New Client Intake Form allowing us to customize your IRS approved Self-Directed Solo 401(k) Plan to satisfy your retirement, investment, and tax needs.
  2. Within 24 hours, your customized Self-Directed Solo 401(k) Plan will be drafted and sent to you for your review.
  3. Your assigned retirement tax specialist will review the plan documents with you.
  4. We will assist you in establishing your Self-Directed Solo 401(k) Plan with Charles Schwab or any other financial institution of your choice. In addition to Schwab, IRA Financial Group has a relationship with Fidelity, E-trade, and Wells Fargo.
  5. Once your new Self-Directed Solo 401(k) Plan has been opened, we will assist you in making a contribution or rolling over existing retirement funds into the plan.
  6. You are ready to take advantage of all the benefits your Self-Directed Solo 401(k) Plan has to offer, including making high annual contributions in pre-tax, Roth, or after-tax, borrowing up to $50,000, and making traditional as well as alternative asset investments, such as real estate, by simply writing a check or sending a wire from your new plan account.

Work with the Leaders

The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP. IRA Financial Group is the market’s leading* Self-Directed IRA and Solo 401K Plan provider. We have helped over 12,000 clients establish IRS compliant Self-Directed IRA and Solo 401k Plans and invest over $3.8 billion in alternative assets, such as real estate.

If you would like to learn more about establishing a Self-Directed Solo 401(k) Plan with IRA Financial Group and opening your plan account with Charles Schwab, please contact a Solo 401(k) Plan specialist at 800-472-0646.

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Posted in Solo 401(k)