Each brokerage house is different in how they classify their investment-only accounts and applications can update at any time. We have made our best efforts to provide you the most up to date applications here, but please check with Schwab to ensure you have the right application to open an investment-only brokerage account under your Solo 401k plan and trust.
It's important to remember you're not opening a Schwab 401k. Rather, your 401k plan and trust are opening an investment-only account with Schwab.
Schwab calls these types of accounts "Company Retirement accounts" and they are designed to work with your Solo 401k.
Step by Step Guide: How to Open a Schwab Investment Account For Your Solo 401k
Alert: DISCLAIMER: Please note that this is not and should not be considered a replacement for tax, legal or investment advice. If you have any questions on completing the Schwab application or successfully completing your rollovers, we strongly suggest you reach out to Schwab directly at (800) 435-4000.
Important: Make Sure the Schwab Application is Up to Date
Tip: NOTE: Schwab documents are subject to change at any time. Please visit Schwab.com to ensure you have the most up to date application. This guide is for informational purposes only and is not a replacement for tax, legal or investment advice. If you have any questions on completing the Schwab application or successfully completing your rollovers, we strongly suggest you reach out to Schwab directly at (800) 435-4000.
You can access the Schwab Company Retirement Account application by visiting: https://www.schwab.com/resource/cra-master-form
Schwab recommends using the Company Retirement Account Master Account Application as the "Investment-only" brokerage account connected to your Solo 401k Plan.
Section 1: Company Information
Tip: Note: To assist in filling out this application, you may want to have your Solo 401k Adoption Agreement.
You can download your signed 401k plan document by visiting https://app.solo401k.com/user/document
Begin by inputting your business information in Section 1
Company Name: Input your company's full name. If you are a sole proprietor, input your name here.
Company EIN: Enter your company tax ID number. If you are a sole proprietor, input your SSN here.
Company Structure: Enter your business entity type (LLC, Partnership, corporation, etc)
State of incorporation: This is where you filed your LLC, or incorporated your corporation. If you are a sole proprietor, this is the state where your business is located.
Company address/telephone number: Input correct and accurate information for your adopting employer
Section 2: Plan Details
Enter your 401k trust name and 401k tax ID number (this is your 401k trust EIN)
Plan Name: Input your trust name as listed in your Adoption Agreement. Please note, Schwab wants your 401k trust name, not the plan name.
Plan Tax ID Number: Use your Trust Tax ID number found at https://app.solo401k.com/user/documents
Complete 401k plan details (see more in tip below)
Type of Plan: Check 401(k)
Date Plan Established: Input the date you established your Solo 401k plan with Nabers
Number of participants: If you and your spouse both participate in the Solo 401k plan, you can each have participant accounts under the Master Company Retirement Account
You can mark "yes" to the last 4 questions.\
Yes, the plan allows covered options trading\
Yes, the plan allows participants to direct investments\
Yes, the plan allows for segregated accounts/FBO\
Yes, the plan allows the participant to trade directly with Schwab
Section 3: Plan Sponsor (your business) Info
Check "Operating Entity" and enter your business name and description
Section 4: Trustee Information
Enter your information as the 401k trustee. Include your spouse in the "co-trustee" section if your spouse is a co-trustee in your 401k plan
Complete information about you as the trustee, including occupation, marital status, and investment experience
Employment status should be checked 'employed' or 'self-employed', depending on your employment status.
Employer name: If you've checked 'self-employed', this is your business or personal name, if you are a sole proprietor “(the “Employer”)”.
Business Street Address: This is your business address
Investment experience: complete your investment experience, assets, income, net worth, etc in the section provided
NOTE: If you and your spouse are co-trustees in the Solo 401k plan, you must list both of your names on the application
Section 5: Investment Objectives
Choose the investment objective that best suits your needs.
Section 6: OK to skip (you checked 401k in section 2)
You can leave Section 6 blank since you checked "401k" in Section 2 (this section is not applicable to you)
Section 7: Account Features
There is nothing to complete in Section 7
Section 8: Paperless Statements
Choose paperless statement enrollment (or opt to receive mailed statements)
Section 9: Optional Checks
Schwab can send you a checkbook for your 401k investment account.
Tip: Even if you are opening a bank account for your Solo 401k trust, you may want an additional checkbook in case you want to invest funds directly from your brokerage account. The checkbook will generally have checks written in the name of your Solo 401k trust.
Section 10: Certificate of Trust
Nothing is required to be completed in this section
Section 11: Sign and date the application
Enter your name, sign and date where applicable
Section 12: Third Party Admin (leave blank)
Leave Section 12 unless you have engaged/hired a third party administrator (this is not common as your Solo 401k is self-administered by you)
Section 13 + 14 + 15: Leave Blank
Leave Section 13-15 unless you have engaged/hired a third party administrator (this is not common as your Solo 401k is self-administered by you)
Alert: DISCLAIMER: Please note that this is not and should not be considered a replacement for tax, legal or investment advice. If you have any questions on completing the Schwab application or successfully completing your rollovers, we strongly suggest you reach out to Schwab directly at (800) 435-4000.
Schwab CRA Participant Application
Alert: If you and your spouse are both opening an account because you are both participants, you both need to fill out a Participant Application after filling out the Master Account Application.
Access the participant application by visiting: https://www.schwab.com/resource/cra-participant-form
Enter your 401k Tax ID number.
The Plan Master Account number will be provided by Schwab (this is your Master account Schwab account number)
Participant App Section 1: Participant Info
Enter the information as requested for the participant (this may be you and/or your spouse)
Provide your employment information (as the 401k plan participant)
Complete the participant investor profile
You can leave "Trusted Contact" blank (since the Schwab account is typically only accessed by you and your spouse)
Participant App Section 2: Investment Objective
Select which option is right for your investment objectives for this account
Participant App Section 4: Sign and Date
Sign and date the participant application
Alert: DISCLAIMER: Please note that this is not and should not be considered a replacement for tax, legal or investment advice. If you have any questions on completing the Schwab application or successfully completing your rollovers, we strongly suggest you reach out to Schwab directly at (800) 435-4000.
Let's walk through various scenarios on opening your Schwab account, be it rolling over funds from a non-Schwab institution or starting fresh with rollovers, rolling over a Schwab 401k into the new Solo 401k Schwab account or rolling over a Schwab IRA into the new Solo 401k Schwab account.
Open Schwab investment account: No rollovers
If you're simply opening the new investment-only account with Schwab to get into traditional equities, then all you need to to is open the Schwab Company Retirement Account under the name and Tax ID Number of your new Solo 401k.
Fund your Schwab account with new contributions, calculated from your business income and you're ready to go.
Complete the Company Retirement plan application: Download application here
Include your complete Adoption Agreement and trust document. These documents can be found in your 401k documents, located on your 401k dashboard.
Note: It is not required you fund the account when submitting the Company retirement account application.
Fax your application to Schwab at 888-526-7252, Attn: new accounts.
If You and Your Spouse are Each Opening a Schwab Account
If you and your spouse are each opening the new investment-only account with Schwab to get into traditional equities, then you'll open the Company Retirement Account Master Account as well as participant sub-accounts (one for each of you).
Each participant will keep his money separate in his own Schwab participant account under the master account for the Company retirement account. You'll each have a distinct login and keep the Schwab funds separate.
Complete the Company Retirement plan application: Download application here
Include your complete Adoption Agreement and Trust Agreement. These documents can be found in your 401k documents, located on your 401k dashboard.
Complete one Participant application per spouse: Download participant application here
Rollovers into the Schwab account from another Schwab account
If you're opening the new investment-only account with Schwab so you can transfer funds from a pre-existing Schwab IRA or Schwab 401k account, the please follow the transfer/rollover tips below.
There are different procedures for rolling in IRA funds or 401k funds. Let's cover rolling in IRA funds first.
Open Schwab investment account: Rolling Over from a Schwab IRA
Open a Company retirement account (application here). Include your complete Adoption Agreement and Trust Agreement. These documents can be found in your 401k documents, located on your 401k dashboard.
Complete the Schwab IRA distribution form (click here to open form)
In section 2, mark that you're completing a direct rollover to a qualified retirement plan:
In section 3, you should not need to have taxes withheld as this is a direct rollover from one qualified retirement plan to another:
In section 5, notate the funds will go to another Schwab account:
Fax your application and documents to Schwab at 888-526-7252, Attn: new accounts.
Note: It is not required you fund the account when establishing the Company retirement account. Additionally, you can submit your transfer documents rolling over funds while you establish the new Company retirement account.
The above steps will accomplish opening a new Company retirement account, withdrawing the funds from the Schwab IRA, transferring them to the new Company retirement account with Schwab and then accepting the rollover as your own plan administrator.
Open Schwab investment account: Rolling Over from a Schwab 401k
Note about Schwab Individual 401k plans rolling into any other retirement plan: You must have had the Schwab 401k at least 2 years to roll the funds into another retirement account. It may be possible to take a 100% rollover/distribution if you are terminating the Schwab 401k plan.
Remember, with a Schwab 401k plan, they are the trustee, not you. With your new Nabers Solo 401k, you have full trustee authority. Most new Nabers Solo 401k clients will terminate the Schwab 401k plan to regain control of your retirement funds, and then roll the entire amount into the Schwab Company Retirement Plan which is owned by your new Nabers Solo 401k plan, which gives you ultimate control over your retirement funds!
Open a Company retirement account (application here). Include the first 4 pages of your Adoption Agreement and your trust document. These documents can be found in your 401k documents, located on your 401k dashboard.
Complete the Schwab 401k distribution form (click here to open form)
In section 4, the payment option can be a direct rollover distribution in a lump sum:
In section 5, notate the funds will go be a direct rollover and input your new Schwab Company Retirement account number:
Fax your application to Schwab at 888-526-7252, Attn: new accounts.
If you have any questions on completing your Company retirement account application, please contact Schwab at 800-435-4000.