Solo 401k Schedule C Self-Employment and Still Working for Employer

QUESTION 1:

I am employed part time, 4 days per week, 6 hours per day for 24 hours per week. Can I open a solo 401k?

ANSWER:

I understand that you mean that you have a w-2 job through an employer on a part-time basis. In order to qualify for a Solo 401k you need to be self-employed. While having a w-2 job does not preclude you from establishing a Solo 401k, you would need some separate self-employment activity (e.g. a side business) in order to qualify. In particular, you would qualify if you report at least some of the income as active income (e.g., on Schedule C on your taxes) & you don't have any w-2 employees working for you who work more than 1000 hours per year. For more on this topic, please visit HERE.

QUESTION 2:

I also own 2 rental properties that provide income. I want to transfer IRA money into a Solo 401k in order to purchase some Tax liens. Do I have to set up a Sole Proprietary LLC for the my real estate rental business in order to open a Solo 401k with checkbook option?

ANSWER:

If you meet the qualification requirements described below, you don't need to set up an LLC for your self-employed business and can simply adopt a Solo 401k plan as a sole proprietor.

QUESTION 3:

Also I have accounts with Ameritrade and would like to use them for the solo 401k brokerage account. Is this possible?

ANSWER:

While the self-directed solo 401k provider will do everything to establish your Solo 401k plan, the solo 401k provider will never have access to your Solo 401k funds. As such,you can elect to have your Solo 401k account at the financial institution of your choice. For example, the checkbook solo 401k provider would prepare the necessary paperwork to open a brokerage account for the Solo 401k at the institution of your choice. Solo 401k providers suchas My Solo 401k Financial work with several including TD Ameritrade as you noted as well as Fidelity and Schwab just to name a couple more. The brokerage firms do not charge anything to establish the account nor do they charge an annual maintenance fee. Moreover, the accounts come with a free checkbook. For more information, please see the following link: 

https://www.mysolo401k.net/fidelity-solo-401k/

To learn more about the self-directed solo 401k regulations, VISIT HERE.