I already have a Solo 401(k) plan already... can I transfer or convert that to a Self-Directed Solo 401(k) at Rocket Dollar?

Yes! Rocket Dollar will become your Solo 401(k) account, provider.

If you are looking to switch Solo 401(k) providers to gain more control over your investments, to take a loan out of your 401(k), or just to reduce administrative fees. Rocket Dollar is more than equipped to help you transfer or convert your plan.

How does transferring a solo 401(k) plan document work?

Rocket Dollar will issue new plan documents that are pre-approved by the IRS. These will replace your old documents, and Rocket Dollar will take over as your new plan provider. 

Rocket Dollar will easily restate the existing plan once we draft the new Solo 401k Plan Documents. Your previous Solo 401k Plan Adoption Agreement is used to maintain the original plan effective date and name of the plan. The two items will then be listed on the new solo 401k adoption agreement along with the new restatement effective date.

What about the 12-month rule or successor plan rule? 

Since you have elected to stop using your plan provider and use Rocket Dollar Solo 401(k) plan instead, rather than terminate your existing plan, the “Successor Plan Rule” or “12 Month Rule” does not apply. Your solo 401(k) plan is still considered to be open and active, just with a new plan document, instead of being terminated/closed. This process is typically referred to as a “restatement," when an active plan restates plan documentation for updated capabilities. 

Can I still trade stocks, options, ETF’s, bonds, etc? 

If you want to continue trading through a brokerage account AND use your Rocket Dollar account for bank control (AKA checkbook control) in alternative investments,  you can. We have instructions on how to open a Fidelity (Non-Prototype) Retirement account here: How do I open a brokerage account for my Self-Directed Solo 401(k)?

What about transferring a Solo 401(k) away from Rocket Dollar if I'm not satisfied?

If you were no longer satisfied with Rocket Dollar, you would be able to do the same process with another Solo 401(k) provider. If you had self-directed assets held in the plan that you do not want to sell into cash, you might have to make sure you found a Self-Directed Solo 401(k) provider so you can continue to hold those assets with proper compliance. Keep in mind in-kind transfers are very difficult, and if all assets are not properly titled in the name of the Solo 401(k), this could cause significant tax or plan issues.