This guide aims at conducting a 360 degree My Solo 401k reviews. We will specifically review the solo 401k retirement plan offered by My Solo 401k Financial.
Let’s start then.
Table of Contents
My Solo 401k reviews
Before we dive in to analyzing and reviewing the self directed solo 401k plan offered by My Solo 401k, let us brush up few basic concepts like:
What is My Solo 401k?
What is self-directed retirement plans or IRAs?
What are solo 401k plans?
Who are the Self directed or self-administered solo 401k providers?
Why are self administered solo 401k needed?
In case you are well versed with these concepts, skip to the main part of this guide “My Solo 401k reviews“.
What is My Solo 401k?
My Solo 401k is a provider of self-directed retirement plans to individuals or business owners. Started in 2009, My Solo 401k is based in Carlsbad, CA. Mark Nolan is the founder and Chief Operating Officer of the firm.
Specifically, My Solo 401k, provides self-directed plans for solo 401k, 401k Business Financing and IRA LLC.
This guide will conduct an in-depth My Solo 401k reviews for their self-directed solo 401k plan.
We will sift through the fees and charges, pros and cons, legitimacy and its main features.
But before we do that, I will introduce you to the basic concepts of “what are self-directed retirement plans”, “what are solo 401k” and “what are self-directed solo 401k”.
What is self-directed retirement/IRAs?
Self-directed retirement plans are also like traditional IRAs and retirement plans. They let you invest and save for your retirement in a tax deferred manner.
However, the self-directed retirement plans allow added flexibilities like investing beyond the conventional financial products like stocks, bonds and mutual funds, to multiple alternative assets like real estate, bitcoin and other cryptocurrencies, startups, farmlands, precious metals and more.
What are Solo 401k plans?
Solo 401k retirement plans are specifically meant for self-employed individuals.
You can treat them as the 401k plan for self-employed.
Whereas the 401k plan is opened by one’s employer, the solo 401k plan is something that a self-employed individual can open for him/her.
For self-employed individuals, freelancers, business owners with no full-time employees, or small businesses with multiple owners, one of the best options to accumulate retirement wealth with tax advantages is solo 401k.
A solo 401k plan, allows greater contribution limits and hence more investments and tax savings than other contemporary plans like SEP.
Self directed or self-administered solo 401k providers
Now there are two types of providers for the solo 401k.
“Free or prototype solo 401k providers” and “self-directed or self-administered” solo 401k providers.
As the name suggests “Free or prototype solo 401k providers”, like Fidelity, Vanguard, TD Ameritrade, offer solo 401k plans free of cost (with only charges for consultation, if needed).
If these are free, then why should one opt for a self-administered solo 401k plan?
The reason is the “flexibility” provided by the self-administered or self-directed solo 401k plans.
Self-directed solo 401k plans offer options to invest in alternative financial assets (cryptocurrencies, real estate, precious metals, etc.), offer loans, offer Roth contributions and more.
Some of the brokerage firms providing self-directed solo 401k are My Solo 401k (reviewed in this guide), Rocket Dollar, Nabers Group, Safeguard Advisors and Ubiquity.
Why are self administered solo 401k needed?
As mentioned, besides the free providers of solo 401k, like Vanguard, Fidelity, etc., self-directed solo 401k are needed to add more options to the solo 401k retirement plan.
These are added options to invest in alternative financial assets (cryptocurrencies, real estate, precious metals, etc.), offer loans, offer Roth contributions and more.
Okay folks. Enough of the concepts and clarities.
Let’s now dive in to the My Solo 401k reviews for their self-directed solo 401k plan.
My Solo 401k reviews
| Solo 401k plans (free and self-directed) | Investments into alternative assets like real estate, bitcoin, farmland, precious metals and more | Roth | Participant loan | Set up fee | Annual fee | Rollover |
| My Solo 401k | Yes | Yes | Yes | $525 | $125 | Yes |
| E*TRADE | No | Yes | Yes | Zero | Zero | Yes |
| Fidelity | No | No | No | Zero | Zero | Yes |
| TD Ameritrade | No | No | No | Zero | Zero | Yes |
| Vanguard | No | Yes | No | Zero | Zero | Yes |
| Charles Schwab | No | No | No | Zero | Zero | Yes |
| Rocket Dollar | Yes | Yes | Yes | Silver is $360 Gold is $600 | Silver is $15 per month Gold is $30 per month | Yes |
| Nabers Group | Yes | Yes | Yes | $499 | $99 | Yes |
What is “self-directed solo 401k plan” offered by “My Solo 401k”?
Self-directed solo 401k by My Solo 401k, is a retirement 401k plan offered to self-employed individuals, freelancers, business owners with no full-time employees, or small businesses with multiple owners.
My Solo 401k provides a range of alternative investment options like real estate, notes, tax liens, private funds, and equities.
How does the My Solo 401k work?
Step 1: Creation of a Trust
The first step is when a Trust is created, for which you are the Trustee.
Step 2: Open a Bank Account
The next step is to open a checking bank account in a bank of your choice (ideally the self-directed solo 401k provider should not force you to open an account with a bank of their choice).
The account is opened in the name of the Trust, in which you are the Trustee. This account is used for all investments, taking loans, etc.
As an alternative to a bank, My solo 401k can assist you to open a brokerage account with checkbook control and solo 401k loan feature, at one of the brokerages like Fidelity, Vanguard, TD Ameritrade, etc.
Step 3: Funding or Rollover
The next step is to either fund your account. You can either transfer funds from your existing bank account (an initial tax-deductible contribution) or you can roll over funds from your previous IRA account.
My Solo 401k will help you in the roll over process.
Step 4: Start investing
Once your account is funded, you can start investing in traditional or alternative financial products like stocks, bonds, real estate, metals, private equities, etc.
My Solo 401k will prepare your Solo 401k documents within 24 hours, e-mail them to you and assist you in completing forms and opening bank account(s).
List of documents prepared are:
a) Solo 401(k) Adoption Agreement
b) Solo 401(k) Trust Agreement
c) Solo 401(k) Plan Document
d) IRS Opinion/Determination Letter
e) Beneficiary Designation
f) Entity Type Adoption
g) Our Agreement for Services for you to review and accept
Other forms:
a) Solo 401k Participant Loan Forms
b) Transfer/Rollover Forms
c) Bank Guide for opening Solo 401k Checking Account
My Solo 401k: Fees and Charges
My Solo 401k charges a one-time set-up fee and an annual fee. The annual fee covers timely requested Form 1099-R and Form 5500-ez reporting requests.
| One-time setup fee | $525 |
| Annual Fee | $125 |
The services that are offered by My Solo 401k, which are included in the fees given above (one time setup and annual fee) are:
- Support in IRS Approved 401(k) Documents
- Obtainment of Employer Identification Number (EIN) for Solo 401k Plan
- Bank account setup at bank of your choice with a checkbook and wire control
- Free Brokerage Account with checkbook control at one of the major brokerage houses like Fidelity Investments, Charles Schwab, E-TRADE or TD Ameritrade.
- Ongoing Plan Maintenance & Support
- Free Rollovers from previous retirement accounts
- IRS Opinion Letter
- Form 5500-EZ electronic filing
- Form 1099-R electronic filing
- One-Click Annual IRS Maintenance
The user experience of the platform
As per their website, My Solo 401k promises to align experienced professionals, Harvard law graduate attorneys, and compliance professionals to support you through the investment process.
Senior Compliance officers assist you in responding to any IRS plan audit or compliance check and guide you through the entire solo 401k setup process as fast as possible.
Please read some customer testimonials here Customer testimonials
My Solo 401k is given an A-plus Better Business Bureau (BBB) rating with no customer complaints & over 100 five-star reviews further establishing the good customer care provided by My Solo 401k.
My Solo 401k provides ongoing compliance support (including the 2020 IRS required plan update, 5500-ez filing if required, etc. at no additional charge)
Mode of investing:
The mode of investing is by writing a check.
Participant loan:
My Solo 401k allows you to take a loan against your solo 401k account, which is 50% of your vested amount up to a maximum value of $50,000.
For example, if your vested amount is $1,20,000, then you are eligible for a loan of up to $50,000 since 50% of the vested amount is greater than the maximum limit of $50,000.
Beyond the $50,000 limit, please check with My Solo 401k for tax implications.
The loan amount taken is free of any taxes if the following conditions are met:
- The loan must be paid in full withing a maximum period of 5 years.
Exception: You are exempted from this condition, if the loan is taken to buy a residential property for yourself.
- The loan must require substantially level amortization of principal and interest, with payments required at least quarterly.
That means you need to pay the loan in installments at regular periods. These regular periods must not be more than three months.
For example, a loan for a five-year term that requires payments of interest only until the end of the term, and a balloon payment at the end, does not qualify.
Customer care contact
Call: 800-489-7571
Monday-Friday
8:00 am – 4:00 pm PT
For the updated contact information, refer here.
Roth option availability
My Solo 401k self-directed solo 401k account allows the option for Roth contributions so that you can have tax-free withdrawals at retirement.
Rollover
My Solo 401k self-directed solo 401k allows rollover or transfer of your previous retirement accounts to the solo 401k.
My Solo 401k manages all the transfer process, like documentation for transfer, reporting the rollover, and more.
Rollovers are allowed from:
- IRAs or other (non-Roth) employer plans (unlimited amounts)
- Rollovers from other Roth 401k plans, Roth 403b, Roth 457 and Roth TSP (unlimited amounts).
Conclusion
By now we tried to conduct a complete “My Solo 401k reviews”. We reviewed its self-directed solo 401k retirement plan offered to the self-employed professionals or small businesses that do not have an W2 employee.
The solo 401k plan (self-directed solo 401k) comes into the scene, when business people of freelancers look for flexibilities and broader offerings in their retirement savings plan.
There are free solo 401k plan in the market offered by brokerage firms like Fidelity, Vanguard, E* Trade, and TD Ameritrade. However, these plans are not customizable to the needs of the investors (like investment in alternative assets, participant loans and Roth option).
Hence, solo 401k provided by My Solo 401k Financial provides you the option to invest in alternative financial asset classes like real estate, bitcoin and other cryptocurrencies, precious metals, notes and more.
The plan also allows you to take participant loans and contribute in the Roth plan.
Overall the plan is admired by users and it is given an A-plus Better Business Bureau (BBB) rating with no customer complaints & over 100 five-star reviews further establishing the good customer care provided by My Solo 401k.
