I Don't Need a Custodian nor LLC for a Self-Directed Solo 401k?

[William DeHaan]

Hey Everyone!

I was going to transfer my Individual 401k (currently with Schwab) to a Self-Directed Solo 401k with Provident Trust using them as the Custodian ($495/year) and then also establishing an LLC to which funds would be transferred and controlled.

THEN I saw this on an IRA Financial Group website.

Is it really true that I can establish a Self-directed Solo 401k account with a local bank and then no need for Custodian fees (okay, maybe the bank will charge an annual fee as well), but no need to establish an LLC and pay that set-up fee and annual state tax? And the Solo 401k will be in my name and NOT the Custodian's name?

See this below:

“Checkbook Control": One of the most popular aspects of the Self-Directed 401K Plan is that it does not require the participant to hire a bank or trust company to serve as trustee. Unlike, an IRA which requires a financial institution to serve as trustee and custodian of the IRA, in the case of a Self-Directed 401K Plan, the plan account can be opened at any local bank or credit union and the plan participant can serve as trustee of the Self-Directed 401K. This flexibility allows the plan participant (you) to gain "checkbook control" over your retirement funds. In essence, all assets of the Self-Directed 401K Plan will be under the sole authority of the 401k participant. A Self-Directed 401K plan allows you to eliminate the expense and delays associated with an IRA custodian, enabling you to act quickly when the right investment opportunity presents itself. With a Self-Directed 401K Plan, making a 401K Plan investment is as simple as writing a check.

IS THIS TRUE?