Thanks for Roth Solo 401k Answers

 

Thanks. Your answers were great! Nice work. I appreciate it.

I'd like to move forward and open Solo 401k with you. FYI, I have not made a contribution to my Simple IRA for 2012, nor will I.  My Simple IRA account is -0- because I rolled it over to my regular Roth IRA at Schwab last year.

I plan to make a $22,500 Roth Solo 401kc ontribution for 2012 and would like to do so immediately. Of course I'll have to wait until January to see what my maximum pre-tax Solo 401k profit sharing contribution could be for 2012, but I'd like to make a preliminary profit sharing contribution immediately based on my YTD income so far (and my "net" income will only go up between now and the end of December). I need to figure out my YTD net income, less 50% of the SE tax on that.

Both of the Solo 401k accounts will be at Charles Schwab where I have my other retirement accounts.

QUESTION: I plan to go with your Option 2 pricing which is $595 for first year plus $125/year starting on the plan first anniv. date. How many years is the $125 price guaranteed for?

ANSWER:  The $125 annual Self-Directed Solo 401k fee is guaranteed for the life of your relationship with MySolo401k.net.

QUESTION: Please let me know how to proceed.

Thank you,
DB

ANSWER:  To get started with opening Solo 401k, please follow the steps on our online sign-up page.

http://www.mysolo401k.net/OpenSolo401k.html

Alternatively, we can call you and assist you in completing the answers on our sign-up page as well as walk you through the Solo 401k EIN establishment process.

Note that the employer identification number is for the Solo 401k, not your business. The EIN only takes minutes to obtain online via the IRS website. Here’s link to Solo 401k EIN  page of our website containing full instructions and the IRS EIN link. Again, please let me us know if you need assistance in obtaining the EIN for the Solo 401k.

http://www.mysolo401k.net/EIN-NUMBER.html

After we receive the information, we will prepare and e-mail your Solo 401k plan establishment documents within 24 hours.  We will also e-mail the applicable Charles Schwab brokerage account forms with a cover letter as well as instructions. Subsequently, we will call you to assist you in filling out all the Solo 401k establishment forms and Schwab brokerage account forms for establishing Schwab brokerage accounts with checkbook control for your Roth Solo 401k and traditional Solo 401k.  

Naming the Solo 401k: You are free to name the Solo 401k as you wish. For example, you can name it "Darryl Bailey CPA Solo 401k Trust", or keep it short and sweet and name it "Bailey Solo 401k Trust", or if you are looking for some privacy, you may want to name it Blue Sky Solo 401k Trust. In other words, the IRS does not require that you use your name or business name when naming your Solo 401k.

For illustration purpose, assume that you name your Solo 401k:”Darryl Bailey CPA Solo 401k Trust "; therefore, the Schwab brokerage accounts would be titled:

For the Traditional Solo 401k funds: Darryl Bailey CPA Solo 401k Trust

For the Roth Solo 401k funds: Darryl Bailey CPA Solo 401k Trust (Roth)

As you can see, to distinguish the Roth from the Traditional funds, your Schwab brokerage account will simply reflect the word "Roth" next to the primary name of the Solo 401k.