Solo 401k - High Yield Savings Account

[Richard Howell]

Is anyone aware of any Savings Accounts that pay high yield savings (1.6% or more) that allows you to open the account in your Solo 401k Trust EIN?  

I would like to be able to put my money to work in such an account when it is not in an investment.  Cash sitting in my account only earns 0.2% .

Much appreciated

[Chad Leton]

From a Solo401k participant I use the Fidelity Brokerage Accounts for long term investing and I keep liquid cash in Goldman & Sachs Savings (1.7%APY). 

I use the G&S accounts (as I have opened several that are viewable on one dashboard) in conjunction with my local bank to move funds about with ease. 

G&S accounts are:

 Our Emergency Fund: 3-6 months of expenses

"Tax Escrow": Set aside our current self-employment tax rate anytime we bring in income and pile it up in here. Earns interest between quarterly estimates.

"General Expense Account": Set aside 4 months minimum of budgeted monthly expenses. As the month rolls over we roll over one month increments to our local checking account.

"Goal Savings": Squirrel extra money here after setting aside taxes and investing in Brokerage Account, and anything beyond the 4 month general expense account to save for "dream purchases"

Basic philosophy is pay yourself/Solo401K tax advantages accounts first (401k Roth IRA and HSA), then self employment taxes. Get the 4 month general expenses where they need to be. After that can allocated money toward whatever else we feel we'd like EVEN investing in a brokerage account outside the 401k.

EXTRA NOTE: We do keep some money "liquid" inside the brokerage account in a Money Market (SPAXX) until we have minimum amount needed to buy shares in our selected funds. We also keep money liquid here so that if the right Real Estate opportunity comes up we can write a check.

Sorry for the overkill on detail but just wanted to share how my family and I use our Solo401k and our High Interest Savings Account to move towards our life goals.