ForumsSolo 401k Bank AccountHelp with establishing solo401k at credit union

Forums Solo 401k Solo 401k Bank Account Help with establishing solo401k at credit union

  • Help with establishing solo401k at credit union

    5 Replies
  • Top SubjectSolo 401k,Solo 401k Bank Account
    Top ForumsSolo 401k, Solo 401k Bank Account

    David W.
    Top SubjectSolo 401k,Solo 401k Bank Account

    March 15, 2022 at 11:25 pm

    I don’t want to use banks. But multiple local credit unions say that cannot setup a trust for a business (for the solo401k checking accounts). And they don’t know what a retirement trust is. I’ve given them the guide you provided but they still don’t understand. Is the trust being set up for the business? Can you provide some clarity to share so I can get this set up?

    David W.
  • Mark Nolan

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

    Mark Nolan

    Mark Nolan

    Top SubjectSolo 401k,Solo 401k Contributions

    March 16, 2022 at 6:36 am

    The solo 401k holding account can be opened under a personal, business or trust bank account type. What is important is that the bank account is opened in the name of the solo 401k using the plan’s EIN. It is not uncommon for banks and credit unions to not know what a solo 40k is and that they will have no role in servicing or performing reporting for the solo 401k. Please email us and we can setup time to speak with your credit union and also provide a bank certificate of trust if necessary.

    • Top SubjectSolo 401k,Solo 401k Bank Account
      Top ForumsSolo 401k, Solo 401k Bank Account

      David W.
      Top SubjectSolo 401k,Solo 401k Bank Account

      March 16, 2022 at 10:03 am

      Thank you Mark. So I understand, I can ask for a personal bank account to be set up in the name of the trust? So they are not actually setting up a trust with the bank then? Also, how could they set up a personal account if the trust is for a business?

      David W.
      • Mark Nolan

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

        Mark Nolan

        Mark Nolan

        Top SubjectSolo 401k,Solo 401k Contributions

        March 16, 2022 at 10:23 am

        1. Yes.

        2. Correct as the solo 401k trust was setup with us. The bank is jus simply holding the funds. Similar to an LLC, where the bank holds the fund for the LLC but your don’t open an LLC with the bank.

        3. The bank account type can be personal, business or trust to satisfy their internal opening procedures as long as the account is opened in the name of the solo 401k using the solo 401k EIN.

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