Can I Add an LLC to Solo 401(k)
By Steve Sheppherd
Some of our clients with the solo 401(k) would like to add an LLC. Perhaps for anonymity, that is what they wanted to do. And that is not an issue at all. As plan administrator, you can approve an investment of the 401(k) into an LLC that we create. We set it all up, then you can be the manager.
And now, one of the advantages is that, when you buy property, for example, it can be in the name of the LLC. And that can be a lot more anonymous. For example, it could be Spartan Investing, LLC. As opposed to buying a property directly with your plan where there it would say, Steve Sheppherd Investments, 401(k) Plan.
So there it is, and it is in the title, it is in the courthouse, it is in the paper if it has to be published publicly. It is there for the whole world to see; whereas, an LLC can give you more anonymity. It doesn’t give you, really, any more control because as plan administrator, you have the checkbook control and you sign the documents. But it can be added at a little more expense on an annual basis, but really, no more reporting. And it is a real good fit for a lot of our clients.
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