First off I want to thank you for talking with me last week about the Solo 401k Retirement Plan. I do have a few other questions that I forgot to ask. Once again, thank you for answering my questions the other day.
1) Who is the Solo 401k Retirement Plan setup with?
We (Sense Financial Services) establish your plan, draft all your plan documents, create the trust and obtain EIN from the IRS.
2) What are the fees with Solo 401k Retirement Plan such as buying and selling stock. What are all the other type of fees that I might incur, yearly fee, etc?
In order to trade stocks you will need to establish a trading account at TD Ameritrade, Fidelity or use any other trading platform. They might have some fees associated with the trading of stocks, but on our end there are no fees whatsoever for this. Also keep in mind that as BiggerPockets member you get 25% discount off our normal set up fee.
3) How many loans can you have out at one time? I assume it’s 50k total for all loans if you can have more than one. Are the payments paid back monthly, quarterly, etc? What are the fees associated with taking a loan against the 401k. Is the interest rate prime + 1?
You can have one loan at the time, the max amount is $50K or 50% of the value of your account, whichever is less. The loan must be amortized over 5 years with payment back monthly or quarterly. The interest rate is prime plus 1%(currently 4.25%).
4) I am planning on getting my real-estate license. I read the article on your website about Prohibited Transactions and being a conflict of interest. My question is if I am the real estate agent on the property that I am buying through my 401k, can that money from the commission be put right back into the 401k and not be considered prohibited?
You can not provide any services to your 401k plan, whether you paid or unpaid, therefore you can not act as an real estate agent in a transaction that your 401k plan is involved.
5) What does your company provide me if I choose Sense Financial to setup the 401k? Are you free to answer my questions during normal business hours. I know I can message you through Bigger Pockets if I have questions but wanted to know what all else you provided.
See detailed list of services we provide for you initially as well as ongoing here:
As you will see there on the list we offer unlimited client support, you will have designated Account Manager assigned to you that you can ask questions at any time. You can also contact me directly.