Solo 401k

[emtpmd]

I'm setting up my solo 401k through ETrade.

Do I have to appoint a trustee for the plan? Can it be me? It looks like I have the option not to appoint a trustee because I'm self-employed. If it isn't necessary to appoint one, is there any benefit to doing so?

[jfoxcpacfp]

I would defer to jacoavlu or spiritrider as to whether or not you have to appoint a ttee but yes, you can appoint yourself in this situation.

[spiritrider]

It has nothing to do with fact that you are self-employed. It is because a one-participant 401k plan is not ERISA Title I qualified. As such, it does not require a trustee or a bond. You can leave the section blank or you can name yourself as trustee. I don't know if there is any benefit of one over the other.

[emtpmd]

The plan documents say something about being self-employed as an exception to ERISA:

This Plan is exempt from the trust requirements under ERISA section 403 (e.g.,
the Plan covers one or more self-employed individuals as defined in Code
section 401(c)(1)).

So I guess, I'll just move ahead without naming a trustee.

Thanks for the feedback.

[spiritrider]

The ERISA trust exemption is for a self-employed 401k ERISA Title I qualified plan. This only applies if the 401k plan has non-owner/spouse employees.

A one-participant 401k plan is not an ERISA Title I qualified plan to begin with. So it is not subject to ERISA trust or any other requirements regardless whether you are self-employed or own an S/C corporation.

While you are exempt from trust requirements based on the latter, the bottom line is that you are still exempt.