Have you decided to open a Solo 401(k)? If so, you need to get ready to execute the first step in the process–identifying a Solo 401(k) provider.
Make sure that you consider companies that are reputable and low-cost to serve your needs in economical ways.
Keep in mind that a Solo 401(k) has certain requirements that differ from those of traditional 401(k). Therefore, you need to choose a provider with a strong reputation for administering Solo 401(k)s.
What to Consider?
When you look for a Solo 401(k) provider, it will help if you consider the following three factors:
It would be best if you did not choose a provider with the lowest fees but choose one that does not have unnecessary high fees that might negatively impact your account over the long term.
You will find many varieties of Solo 401(k) providers. Some are national firms with a reputed history. And others are smaller firms that specialize in alternative investments and other services. It will help if you do not go by size but with the company’s reputation with an impressive track record.
Adequate Investment Flexibility
You can have various investment strategies and goals. Therefore, make sure to choose a provider with the flexibility to give you access to your investment options.
You might already have good relationships with brokers or firms. You can approach them to show you how to set up a Solo 401(k). If you find that they can meet your needs, you can choose one of them as your provider.
However, if you do not have such relationships, look for a cost-effective and reputable company to set up a Solo 401(k).
Choosing a Solo 401(k) provider is only the first step in the process. There are many other aspects to consider when opening a Solo 401(k). Refer to the infographic in this post to know more.