Ready to rollover SIMPLE IRA and Open Solo 401k

 

 

I'm ready to establish Self-Directed Solo 401k:

• Have established a Secretary of State recorded LLC “Solo-Performance LLC” in South Carolina.

• Have received a EIN number from IRS for business.

• I do have a simple IRA with Ameritrade that I would like to transfer to my new Solo 401k.

Now I want to open Solo 401k administered by mysolo401k to purchase real estate and move money in and out the Ameritrade account as I see fit.

 QUESTION: Do I need Ameritrade brokerage account for Solo 401k with check writing option for making “allowed” purchases of tax liens and keep the rest of the funds in Ameritrade Solo 401k broker account?

ANSWER:

First, regarding SIMPLE IRA, make sure that you have had it opened for at least 2 years in order to comply with the SIMPLE IRA 2 year holding period. If you have had the SIMPLE IRA for 2 years, you can transfer/roll it over to Solo 401k. You can process a full or partial transfer of your SIMPLE IRA to Solo 401k provided you have met the 2 year SIMPLE IRA holding period.

Second, as a Solo 401k provider our Solo 401k names you as trustee and administrator of your Solo 401k. Therefore, we assist you in administering the Solo 401k, i.e., we file annual Form 5500 E-Z, prepare Solo 401k Loan documetns which are required in order to process a Solo 401k that is in compliance with the IRS Solo 401k rules, etc.

Third, our Solo 401k permits investments in alternative investments incuding tax liens as well as real estate, private company shares, precious metals, etc.

Fourth, we can assist you in opening brokerage account with checkbook control at TD Ameritrade. That way you easily internally transfer your TD Ameritrade IRA to Solo 401k brokerage account at TD Ameritrade. We will prepare the SIMPLE IRA transfer form, Solo 401k establishment documents, and help you complete the TD Ameritrade brokerage accounts forms once you decide to use MySolo401k as your Self-Directed Solo 401k provider.  The process generally takes 24 hours.

 

Fifth, with respect to your comment "move money in and out the Ameritrade account as I see fit", keep in mind that profits generated by Solo 401k owned investments (e.g., real estate, tax liens, promissory notes, etc.)  generally must flow back to the Solo 401k. If profits don't flow back to the Solo 401k, distribuiton rules and/or prohibited transaction rules apply.  

Thanks

 CD