ForumsSolo 401k Brokerage AccountBeneficiary clarification

Forums Solo 401k Solo 401k Brokerage Account Beneficiary clarification

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  • Beneficiary clarification

    1 Reply
  • Top SubjectCryptocurrency,Solo 401k Brokerage Account
    Top ForumsCryptocurrency, Solo 401k Brokerage Account

    Berry Cox
    Top SubjectCryptocurrency,Solo 401k Brokerage Account

    February 4, 2022 at 12:30 pm

    The documents from I received from MySolo401k.net have a beneficiary designation form that is very self-explanatory. My situation is simple (spouse as primary, children as contingent) and is easy to designate on the MySolo401k.net provided form. All good to this point.

    However, I am in the process of setting up trust accounts at Interactive Brokers to be the 401k depository. During the setup of each of the Solo401k sub-accounts, the online IBKR new account setup asks for “Beneficiary Information” for the Trust with the following description:

    Add all beneficiaries of the Trust. A trustee may generally not be a beneficiary of the trust for which it is acting as trustee unless there are other beneficiaries of that trust.

    The beneficiary is the person or entity that receives money or other benefits from the trust. The trust instrument may also identify a beneficiary by reference to membership of a class of persons or entities. You must add at least one beneficiary (either an individual or an entity) or add beneficiary class details.

    My question is what should I enter where the IBKR Trust Account application asks for “Beneficiary Information”?

    Thanks!

    Berry Cox
  • George Blower

    Top SubjectSolo 401k,Solo 401k Contributions
    Top ForumsSolo 401k, Solo 401k Contributions

    George Blower

    George Blower

    Top SubjectSolo 401k,Solo 401k Contributions

    February 5, 2022 at 7:04 am

    @priority

    Top SubjectCryptocurrency,Solo 401k Brokerage Account

    Thank you for posting your question!

    We have helped many of our Solo 401k clients open brokerage accounts at Interactive Brokers and other brokerage firms (e.g. Fidelity, Schwab, TD Ameritrade, etc).

    In all of these case, please note that the brokerage firm is merely the custodian of the cash and other traditional brokerage investments (e.g stocks, bonds, mutual funds, etc.) and the brokerage account is being provided for a third-party plan.

    This means that governing beneficiary election form is the form that is provided with the Solo 401k establishment documents that we provide to our clients.

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