Solo 401k multiple brokerage and bank account questions

QUESTION 1: After rolling individual IRA’s into a self-directed solo 401k trust account, is it possible, and if possible, then maybe difficult to roll funds from the 401k back out to an IRA in order to buy, say, mutual funds or stocks from a different broker and still keep the tax deferred status intact on those funds?

ANSWER: Yes the IRA and solo 401k rollover rules permit the transfer of retirement funds between each other. However, if you are seeking to invest in stocks and mutual funds, you can do so under the solo 401k plan. We can assist you in setting up a brokerage account in the name of the solo 401k at Fidelity, Charles Schwab or TD Ameritrade, for example. What’s more, the check writing feature for placing alternative investments such as real estate, promissory notes and tax liens, to name a few, can also be added to this type of brokerage account arrangement. As such, you can accomplish both the alternative investment purchase and stock and mutual fund purchases under the brokerage account without having to open a bank account for the solo 401k.  

QUESTION 2: Is it possible to buy mutual funds from multiple brokers with my solo401k?

ANSWER:  Yes but it doesn’t really make sense. You would just be creating more work for yourself and added tracking headaches by opening multiple brokerage accounts for your solo 401k.

QUESTION 3: Would the mutual fund statements act as a paper trail similar to a deed to a rental property purchased by the 401k? In other words would the mutual funds purchased by the 401k funds cause tax problems or tax confusion with the IRS, or from gains reported directly to the IRS from individual brokers?

ANSWER: No as the whole purpose of the brokerage account statements is to track the Solo 401k activity. Note that solo 401k funds are not tax reported unless you take a distribution from the solo 401k.

QUESTION 4: Would the purchase of the mutual funds purchased by, and in the name of the 401k trust, be sufficient as a paper trail and be understood by the IRS and the brokerage company, that the purchased funds and gains are all under the tax deferred bubble of my 401k?

ANSWER: Again, as outlined above in the answer to question 3, the brokerage account for the solo 401k serves for holding the tax deferred funds including the mutual fund and stock investments and no tax reporting applies provided you don’t make any solo 401k distributions.