Switch Unit K to Solo 401k Account | Buy real estate using Solo 401k

SCENARIO: I am interested in setting up a  solo 401k and am working on the application online.  I currently have a Uni-K retirement account with Pioneer Investments but I am interested in investing in real estate which is the reason I would switch to a new Solo 401k provider.  I would plan on rolling the assets of the Uni-K account into the Solo 401k.

QUESTION: I see that I need an EIN to apply.  My company (S-Corp.) which sponsors the Pioneer Uni-K plan does have an EIN.  My question is should I use the EIN for my company or should I apply for a new EIN for this new Solo 401k account?

I appreciate your assistance.

Tim P. from Tennessee

ANSWER:  While technically you can continue using your S-Corp business EIN for the solo 401k plan, it is highly recommended that you establish a separate employer identification (EIN) for your solo 401k plan. Reason being, when you go to setup the solo 401k bank account the bank will ask for it, so if you provide your business EIN instead, they will perform all informational reporting to the IRS using the S-corporation's EIN instead of the Solo 401k plan’s, which in turn may cause confusion at the IRS level.  

What’s more, when you commence investing the solo 401k in real estate, a W-9 will need to be filled out and one of the items asked on the form is the EIN for the party to the transaction. Well, the solo 401k is the buyer of the property, not your S-corporation; therefore, if you use your S-corps EIN instead of the Solo 401k plan’s EIN, the IRS may think that your S-Corp was the one that purchased the property, not your Solo 401k plan.