Monday, December 9, 2013

solo 401k for Realtors




http://www.mysolo401k.blogspot.com/2012/05/what-is-solo-401k-commonly-called.html

QUESTION 1: My wife and I are Realtors, commission based only. To set up a solo 401k account do we each need to have an EIN or just one of us? Primarily our commissions are in my name/SSN as we are trying to keep my SSN benefits maxed. We file jointly and do business in our names and not in a business name.
ANSWER: Any business entity type can adopt a solo 401k plan. Both spouses can participate in the solo 401k plan if both are performing self-employment activity. If only one is performing self-employment activity, then just that one can participate in the plan. The EIN is for the solo 401k plan so just one EIN is required.
QUESTION 2: Can we utilize Vanguard?

ANSWER: Unfortunately, Vanguard does not support the self-directed solo 401k (a type of solo 401k that allows for solo 401 loans and investments in alternative investments such as real estate and precious metals to name a few). However, Fidelity, Schwab and TD Ameritrade do offer brokerage account for the self-directed solo 401k.  Click here to learn about the Fidelity brokerage account for the self-directed solo 401k.

Regards,

John in Montana

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