Once your Solo 401k has been established, your next step is to fund the 401k plan.
There are two ways to fund the Solo 401k:
Rollovers: After you input a few basic details in your encrypted Solo 401k portal, our one-of-a-kind software will prepare a complete rollover packet for you immediately. Simply print, sign and send this packet to your current custodian (whoever has the money now). Your current custodian/administrator will send you a check, made payable to your new Solo 401k trust.
Our rollover packet contains complete compliance information for your Solo 401k plan, including a copy of your IRS Opinion Letter (proving the plan’s qualified status). We even include a sample 1099-R so your current custodian or administrator can correctly document your rollover as a direct transfer, and not a taxable distribution.
Contributions: We’ll provide everything you need to document a new contribution to the Solo 401k. The contribution can be pre-tax (traditional, tax-deductible) or Roth (after-tax, not tax-deductible). Remember, contributions must be based on a calculation of net earnings of the business connected to your Solo 401k. Use our helpful contribution calculator to get an idea of how much you might want to contribute. Always work with your CPA to ensure your contribution calculations are correct so you don’t over or under contribute!
Once you get the money “flow” going, you’ll want to open a bank or brokerage account (or both!). You can open the bank and/or brokerage account anywhere, and we are here to support you. We have a couple banks we train and recommend (though we are not affiliated with them in any way), to make the account opening process easy for you!