recommendation of banks for Solo 401k checking account

[Jason Staine]

Not having an easy go of finding a branch that can hold a checking account for our solo 401k. we are in North Jersey. Any recommendations would be great.

[Justin Windham]

@Michael Dymond

Welcome to Bigger Pockets! How long has you bank been offering Solo 401k checking accounts?

[Michael Dymond]

@Justin Windham Thank you!  This is a fairly new offering as the bank is itself in its early stages of growth. 

[Jason Staine]

Thanks for the info. I went with Solera Bank. But thanks for letting BP know.

[Will King]

Has anyone used Titan Bank in TX?

[Justin Windham]

@Will King

Yes, Titan Bank is a good option in addition to Solera Bank.

[Elizabeth Goff]

I am with Schwab, best for me as that's where my investment accounts reside.  Unfortunately cannot due online checks, and also cannot attach to Venmo.  Paypal is OK, which works for most instances when I need to pay contractors etc.

[Gary Hammond]

Lots of good information provide, I’m going to try Bank of America but I’m also going to take a look at Solera Bank.

Thanks everyone,

Gary

[Robert Caldero]

Do any of these banks allow investing in currencies?

[Malcolm Ovenden]

I recently opened 2 new solo 401k accounts at RBFCU (Randolph Brooks FCU in Texas) without much trouble.  Their only requirement was that the trust adoption agreement had to be notorized. Their checking accounts are also free with no minimum depoit required and no minimum balance. They also have a phone app for doing remote deposits. 

[Justin Windham]

@Malcolm Ovenden

I used to have accounts at RBFCU when I lived in Texas. Nice to know they were able to open checking accounts for your trust.

[Michael Arias]

Would someone be willing to share their bankers name and contact from Wellsfargo? I spoke with a local banker here regarding opening a Solo 401k checking account, and they didn't understand what I was talking about. 

[Justin Windham]

@Michael Arias

Your Solo 401k provider should be able to assist you with this. If they cannot, you may reach out to me and I will help you.

[Brian Eastman]

@Michael Arias

The issue is not which bank you choose to work with, but which banker.  We have hundreds of clients using different branches of Wells Fargo.  We've also had clients strike out with Wells Fargo because the person in their local branch was not up to the task.

A trust account for a Solo 401(k) is just that, a trust account.  But, you mention the word 401(k) and you throw most bankers for a loop.  You are "off their standard checklist", and unfortunately most bankers have no idea what to do when that happens.

The end result is that you get to educate your banker on what you need.  That means you need to speak the right language and show that you know what needs to be done.   Work with your Solo 401(k) provider and they should be able to assist you with properly approaching your banker so as to get results.

Alternately, you can choose to work with a bank that already has trained staff on this topic such as Solera or Titan.

[Dmitriy Fomichenko]

Originally posted by @Michael Arias:

Would someone be willing to share their bankers name and contact from Wellsfargo? I spoke with a local banker here regarding opening a Solo 401k checking account, and they didn't understand what I was talking about. 

If you go with Wells Fargo - you are at mercy of a banker you are talking with. And most bankers are ignorant of the truly self-directed Solo 401k and unwilling to learn. Instead we refer our clients to Solera bank, they have dedicated department for IRA/401k clients so if you contact them - you will be speaking with a rep experienced with this types of accounts. @Kreighton Reed can help. 

[Jean W.]

Just know that Solera bank does NOT OFFER ACH. Please correct me if I am wrong. YOU HAVE TO WIRE TRANSFER EVERY TIME YOU WANT TO TRANSFER FUNDS! What year is it again? 2024. wth

[Joshua Talamante]

@Kreighton Reed How do FDIC limits work with solo 401k accounts?

Quote from @Kreighton Reed:

@Jason Staine Our aim is to be easier to use than your local bank.  Especially for real estate transaction. Its easier to use us for wires (most banks make you walk in and sit in front of a banker for 30 min) and making deposits is simple through our mobile APP

If you do find a local bank or if @George Blower can line you up with his WF or Bank of America bankers I would ask them the following as I have seen this as pitfalls for banking your SoloK account:

1) What is their dormant account policy and what is the fee: Many of these 401K accounts have very low transaction volumes and can end up in dormant status with a typical fee of $25 a month

2) What are the minimum balance requirements: I've seen it where the bankers don't go into detail with this because they hear that you are rolling over a sizeable amount and assume that you are going to keep those balances in the account.  Most of these SoloK accounts start out with large balances and then after the investment drop way down.  You don't want to be getting hit with a $15 monthly service fee.

3) Checks: as stated above these accounts have low monthly volumes.  A box of checks could last you 8 years.  Most banks (especially for business accounts) charge a ridiculous amount for business checks.  Sometimes north of $50.  We offer them for free but if you go with another bank I would recommend you buy the checks at Costco.  They are like $12.

4) Multiple accounts:  Often with these 401K plans you will be opening multiple checking accounts (one for Roth Funds, maybe one for traditional, if your spouse is on the plan then one for them). Just be aware that when opening these accounts they all will be subject to min balance requirements. (BTW we don't have min. balance requirments)

[Kreighton Reed]

@Joshua Talamante $250,000 on the cashin the checking account- the same coverage as a business account.

[Joshua Talamante]

I know legal ownership and beneficiaries can increase that coverage in a number of different combinations, but are there ways you can think of to expand coverage specifically with the solo 401k's? I would assume that these balances quickly and frequently exceed the $250k?

[Brian Eastman]

@Joshua Talamante

It is actually not that common for Solo 401(k) bank accounts to exceed $250K in cash for any extended period of time.  

Once the plan has invested into assets like real estate or securities, that value is no longer covered by FDIC. Only the cash portion is insured.

If your plan has multiple participants, each would have $250K coverage on their cash account within the plan.

If you will be in cash for an extended period of time, you can check to see if your bank offers enhanced FDIC coverage through a service called IntraFi. You can alternately split your cash between different banks if needed.

[Joshua Talamante]

@Brian Eastman

Thank you for that information, Brian.