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Fidelity Contribution Mechanics
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8 Replies
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I set up my Solo 401k with Fidelity in late 2021 and made 2021 contributions in Feb of 2022.
From various My Solo 401k videos, the instructions to make contributions are : “Make the check payable in the name of Solo 401k and write “Annual Contribution” in the memo section.”
When I contacted Fidelity, they had me use the following form: Fidelity Investment-Only Retirement Account
Contribution Form, which appears to be form # 007420101. The form states below the title: “Use this form to allocate contributions to your Fidelity Investment-Only Retirement Account(s) (also known as the Fidelity NonPrototype Retirement Account).”That form asks for Plan and Trust information and then had a Deposit information section where I provided information on my Roth Solo 401k account and my After Tax Solo 401k account. However, the checks (2), as instructed on the form were made out to Fidelity Investments. The form states “Only checks payable to Fidelity Investments or to the
Fidelity fund name will be accepted. Fidelity does not
accept third-party checks.”So I have two questions:
1. Is the process correct?
2. Can I use it for my 2022 and 2023 contributions?
3. I do have check/deposit slips for my various accounts (I think?) so possibly I could make the deposits as instructed in various My Solo 401k videos.
Thank you for your assistance.
Chris Adams
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Good question as the ability to make Mega Backdoor Roth Solo 401k contributions is one of the top reasons that clients open accounts with us!
Keeping in mind that we have clients that have accounts at 100s of different banks and many different brokerages, the process of making the check payable to the name on the account (i.e. the name of the Solo 401k plan) is the process that has worked well for our clients with accounts at many different banks/credit unions as well as brokerages (including Fidelity).
Ultimately, what is most important is that the contributions are deposited into a dedicated account for the Solo 401k (pre-tax, Roth and/or after-tax as applicable), by the deadline, etc.. As such and provided that these Solo 401k contribution rules are met, it is acceptable from a Solo 401k perspective if the check is made payable to the institution (e.g. Fidelity) rather than the plan.
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I have a ROBS 401(k) with Fidelity and that is the form I used when I sent in checks for my deposits. You make the check out to Fidelity Investments since that is the entity cashing the check – you are paying it into the Solo 401k account as indicated by the paperwork you provide Fidelity.
To make it easier, link your bank account to your Fidelity Solo 401k and you can transfer electronically without having to mail a check. I am set up with my bank to make weekly contributions automatically to my employee accounts as well as mine (since they are making voluntary contributions, I can’t wait until the end of the year to deposit.). I could just as easily do the same from the Fidelity side.
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Hi Peter,
Which banks were you able to link to Fidelity to enable ACH transfer? I’ve tried to link Bluevine, Discover, and Wealthfront, and none of them worked. I’d be willing to open yet another bank account to be able to easily ACH transfer funds into Fidelity Solo 401k.
Also does anyone know if Bill Pay to Fidelity as a Payee works? And if yes, what’s the correct info to use?
Thanks!
Jess
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You would want to use a more traditional bank or credit union for your self-employed business for making contributions via ACH to your solo 401k Fidelity brokerage account.
ACH in – Click here to see special instructions. You can make your Solo 401k annual contribution into the Fidelity non-prototype account via ACH. ACH transfers are set up on your personal bank account or business bank account side.
- Fidelity accepts ACH deposits to the brokerage account for your Solo 401k
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An ACH transfer would need to be setup to send to Fidelity using the instructions in the link below.
https://www.fidelity.com/cash-management/deposit-money/determine-routing-and-account-number
- Determine-Your-Fidelity-Routing-Account-Numbers-2.pdf (mysolo401k.net)
- Fidelity Investments direct deposit form | brokerage ABA routing number
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I set up solo 401k at Fidelity in 2022 and sent in a form entitled Self Employed 401(k) – Contribution Remittance Form (available on their website) with a check made out to Fidelity Investments. The form indicates the account number to which the deposit should be credited.
The process worked with no problems.
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