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Updated over 6 years ago,

User Stats

27
Posts
2
Votes
Pradeepan V.
  • Livermore
2
Votes |
27
Posts

Solo 401k investment question

Pradeepan V.
  • Livermore
Posted

Hi

Newbie here. Awesome forum. Love reading great posts. 

So this is my situation. I have a Solo 401k trust account established through mysolo401k.  I have got my EIN too. They have been very helpful in answering my questions but I would like to know some real life examples(if there is anyone who is doing similar to what I am doing). Based on my income I can contribute about 18k ( Employer & employee contributions) to this solo 401k account. 

I am trying to establish 2 accounts - One with a brokerage fidelity etc to trade in stocks, MFs, ETFs etc using my solo 401k account which is little straightforward - Planning to put 50% of my contribution here( 9k) 

The second account I would like to setup is through lending club.  They allow to open trust accounts so can I just open trust account with them using my Solo 401k trust name?  Currently all my self employment income goes to my capital one checking account.  Is it allowed to transfer amounts from capital one to this lending club on monthly basis and transact - Planning to put 50% of my contribution here( 9k or 750/month). I also plan to keep investing the interest gained. 

Or is it mandatory to open up a bank account in the name of the trust( like through Titan or Solera or others) and then transfer the amount from that bank account to lending club.  The monthly maintenance fees and ACH transfers are pretty high so it doesnt make sense for me to open one.  Is anyone investing in lending club using their solo 401k? If yes how are you doing it? 

Can I open third or multiple different accounts with other providers for my 401k trust? is there a maximum number of accounts that I can open( IRS rules?)

Finally I assume both these brokerage accounts and lending club will issue 1099-INT in the name of the trust end of the year? How is it treated while filing taxes? Do I just ignore these 1099 as its not taxable income? or what am I supposed to do?

Are you investing in any other non traditional investments(gold, bitcoins etc etc)? If yes how? 

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