Convert Individual 401k to Self-Directed Solo 401k

QUESTION: I have an individual 401K at Schwab and would like to convert to self directed solo 401k. I have also funds in IRA which I would like to move to the solo 401K.

Can you Please let me know the steps and how much time is needed for the transfer?  

Thanks
Aneil O. from Kentucky

ANSWER: The process will take about 7 days to convert your Individual 401k to a self-directed solo 401k, we need to know the effective date of the Individual 401k which can be ascertained from the Individual 401k adoption agreement.  We also need to know how the Individual 401k is currently titled at Charles Schwab. Next we need to establish an employer identification number (EIN) for the new solo 401k plan as it is most likely that you’ve been using your social security number. A separate EIN is required for the new self-directed solo 401k especially once you start processing alternative investments such as real estate, precious metals, notes, private company shares because the EIN will start flying around on form W-9 (an informational tax form) which is commonly issued when making alternative investments with a self-directed solo 401k.

Your next need to complete step 2 of the sign-up page:

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

You can either fill-in the setup information on your own, or please call us and we will walk you through the entire Solo 401k sign-up process.

Once we receive the required information to prepare your solo 401k plan documents, we will assist you in completing the Solo 401k trust adoption forms as well as prepare the IRA and Individual 401k transfer forms.  We can even assist you in setting up the self-directed Solo 401k brokerage account at Charles Schwab if you would like. That way you can continue using Chwab’s brokerage account services and us as your self-directed solo 401k provider.