Costs: Check Book IRA vs Solo K

Cost of Solo 401(k) vs. Checkbook IRA

As far as the cost comparison between a Check Book IRA and a Solo 401(k), they’re almost exactly the same – the same start-up costs, the same annual maintenance fees. They’re almost exactly the same, so that really it isn’t an issue.

We can set the solo k up quite a bit quicker, as long as you can get your hands on your retirement, can be set up in just a day or two and you’re ready to go. Usually it takes longer than that to get your old Solo 401(k) moved or get your retirement moved to the new trustee account. But as far as the paperwork, we can go very quickly and part of that reason is in most cases people don’t want or need to attach an LLC to your retirement program.

Because you have checkbook control, you can just write the checks right out of your Solo 401(k) account as the plan administrator. Where in the Check Book IRA, you need to add the LLC and that’s quite a large expense, ongoing expense as well, but that’s what gives you the checkbook control over the IRA. Where with a Solo 401(k), as plan administrator, you actually are the custodian, you are the plan administrator and you have that control over your local plan at your local account.