Many self employed professionals and business owners choose the self-directed Solo 401k plan for the Checkbook Control that it offers. With this feature, the plan owner can gain complete control over their Solo 401k trust. Instead of going through a custodian and pay extra management cost or transaction fees, plan owners can directly manage their investments.
Many Solo 401k plan owners are experienced investors who would like to direct their investments through a brokerage account. Fortunately, it is possible to have a brokerage account under the name of the Solo 401k trust. In the Solo 401k Quick Tip video below, we will discuss the process of opening a Solo 401k Trust brokerage account:
Open a Brokerage Account for a Solo 401k Trust
You may open a brokerage account in the name of the Solo 401k Trust. You will use the 401k trust name and EIN when opening the account. The account can be funded with the money from your Solo 401k checking account, if you have one, or you can request a rollover from another qualified account directly into the brokerage account of your Solo 401k Trust.
For more details on the brokerage account setup process, speak with a representative at the brokerage you are considering. Each brokerage may have a slightly different process.