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Fidelity Investments Solo 401k Private Company Investment
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It is important to understand that in addition to providing their own solo 401k plans, Fidelity Investments also provide brokerage accounts for solo 401k plans offered by other providers whose solo 401k plans allow for making alternative investments such as real estate, notes, and private placements/private company shares, etc. These alternative investments cam be made by check or by wire.
Fidelity acts merely as the custodian for cash and traditional investments within the 401k and they don’t do any Solo 401k plan tax reporting with respect to the accounts. Any loans or alternative investments, such as real estate or investments, will not be reflected on Fidelity statements. Therefore, writing a check for such allowable alternative investments under the self-directed solo 401k plan does not constitute a withdrawal or taxable distribution.
Learn More:
- How to Title Self-Directed Solo 401k Alternative Investments
- Private Company Investment – My Solo 401k Financial
The investment needs to be made under the name and EIN of the Solo 401k. It is important to ensure that the Solo 401k’s EIN is used in the documentation. The signature on the investment documents should be made as the trustee of the Solo 401k. This means signing documents in a capacity that reflects the role as trustee, which ensures proper representation of the Solo 401k in transactions.
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