Setup Fee for Both Solo 401k Participants

QUESTION:

I'm currently looking into self directed solo 401k companies in an effort to further diversify my retirement portfolio. (primary interested in Real Estate)

So is the initial setup fee and yearly fee per account? Or is there any spousal account benefits?

For example, if both my wife and myself wanted accounts (standard and ROTH) would that be considered four accounts, which is 4x the setup and yearly fees?

ANSWER:

It is standard in the industry for the solo 401k provider to only charge one fee per solo 401k plan regardless if both spouses or all business owners participate in the solo 401k plan. A solo 401k plan is setup (sponsored) by the owner-only business; therefore, if in your situation you and your spouse are both self-employed under the same business, then plan would be steup for that business and you would both be participants in the same plan.

What is more, while both spouses would participate in the same plan, each would have their own separate bank account under the solo 401k plan to track their contributions and 401k fund types/sources (e.g., Roth an pretax funds).

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