Fidelity solo 401k question

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Topic Author
am
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Joined: Sun Sep 30, 2007 9:55 am

Fidelity solo 401k question

Post by am » Wed Jan 30, 2019 9:59 am

I want to deposit several checks and make a solo 401k contribution at Fidelity online. I don’t see a way to do this that’s obvious. Does it have to be done through the branch? Does anyone have any experience?

LeeMKE
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Re: Fidelity solo 401k question

Post by LeeMKE » Wed Jan 30, 2019 10:18 am

Unfortunately, you must mail in the checks with the instruction sheet signed.

Fidelity does not allow contributions to be delivered online.

I am guessing, but their interpretation of IRS regs may be that a live signature from both Admin and Employee is required (which in a Solo 401K is usually the same person).
The mightiest Oak is just a nut who stayed the course.

Topic Author
am
Posts: 3108
Joined: Sun Sep 30, 2007 9:55 am

Re: Fidelity solo 401k question

Post by am » Wed Jan 30, 2019 10:22 am

LeeMKE wrote:
Wed Jan 30, 2019 10:18 am
Unfortunately, you must mail in the checks with the instruction sheet signed.

Fidelity does not allow contributions to be delivered online.

I am guessing, but their interpretation of IRS regs may be that a live signature from both Admin and Employee is required (which in a Solo 401K is usually the same person).
Thanks. I’ll have to drive in the Arctic cold to the branch :annoyed

Polaris
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Re: Fidelity solo 401k question

Post by Polaris » Thu Jan 31, 2019 9:20 am

I just send mine in to the address in Cincinnati via USPS. It usually shows up in my account within a week.

IMhooked
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Re: Fidelity solo 401k question

Post by IMhooked » Thu Jan 31, 2019 9:25 am

Fortunately in SE WI I have a branch location in Brookfield. It's a 40 min drive one way but it's nice to physically deposit at the counter and by the time I've returned home it's posted and ready to invest. One newer teller was confused as to what I was trying to do, but once I let her know it was a 'non-prototype account' she figured it out. :happy

John Laurens
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Re: Fidelity solo 401k question

Post by John Laurens » Thu Jan 31, 2019 9:31 am

I contribute monthly to my fidelity solo 401K. It’s 12 stamps and 6 minutes per year of time.

Regards,
John

J295
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Re: Fidelity solo 401k question

Post by J295 » Thu Jan 31, 2019 9:33 am

We make our Solo 401k contributions each year with a phone call to Fidelity and the funds are transferred from one of our brokerage accounts into the designated solo 401k. In the phone call I designate the applicable year, the employer amount,and the employee amount.

As for depositing checks (into our brokerage account), we use the mobile app. on our phone for the few actual check deposits we have to make.

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southerndoc
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Re: Fidelity solo 401k question

Post by southerndoc » Thu Jan 31, 2019 12:44 pm

This is confusing how Fidelity won't allow one to do this electronically online, but will do it over the phone.

If enough people write the CEO requesting the ability to contribute electronically, it will happen.

PM me if you want her email, but usually a written letter works better.

zubinh
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Re: Fidelity solo 401k question

Post by zubinh » Thu Jan 31, 2019 2:34 pm

southerndoc wrote:
Thu Jan 31, 2019 12:44 pm
This is confusing how Fidelity won't allow one to do this electronically online, but will do it over the phone.

If enough people write the CEO requesting the ability to contribute electronically, it will happen.

PM me if you want her email, but usually a written letter works better.
Not gonna happen. Fidelity's process is identical to Schwab's. There are ERISA regulations that strictly govern how and from which accounts an Individual 401k contribution can be made. They also need to know from the account holder what portion of your contribution is a salary deferral vs. the elective or profit sharing contribution. It costs these firms more money to take in non electronic deposits or to have you speak to a rep but the firms have no choice since federal laws govern these transactions.
Last edited by zubinh on Thu Jan 31, 2019 2:39 pm, edited 1 time in total.

terran
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Re: Fidelity solo 401k question

Post by terran » Thu Jan 31, 2019 2:35 pm

I've driven to a fidelity office before to make the deposit, but I'd mail it in rather than driving 40 minutes to do it. If you do drive, and don't do any non-business activities while you're doing it, track your miles and deduct them.

nolesrule
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Re: Fidelity solo 401k question

Post by nolesrule » Thu Jan 31, 2019 3:21 pm

zubinh wrote:
Thu Jan 31, 2019 2:34 pm
southerndoc wrote:
Thu Jan 31, 2019 12:44 pm
This is confusing how Fidelity won't allow one to do this electronically online, but will do it over the phone.

If enough people write the CEO requesting the ability to contribute electronically, it will happen.

PM me if you want her email, but usually a written letter works better.
Not gonna happen. Fidelity's process is identical to Schwab's. There are ERISA regulations that strictly govern how and from which accounts an Individual 401k contribution can be made. They also need to know from the account holder what portion of your contribution is a salary deferral vs. the elective or profit sharing contribution. It costs these firms more money to take in non electronic deposits or to have you speak to a rep but the firms have no choice since federal laws govern these transactions.
Vanguard's solo 401k manages contributions electronically through their small business portal. Hook up a bank account, specify how much money goes into each investment and the type (Traditional/Roth/employer) and submit.

The only reason I switched to Fidelity was the ability to do rollovers.

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southerndoc
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Location: Atlanta

Re: Fidelity solo 401k question

Post by southerndoc » Thu Jan 31, 2019 8:54 pm

zubinh wrote:
Thu Jan 31, 2019 2:34 pm
southerndoc wrote:
Thu Jan 31, 2019 12:44 pm
This is confusing how Fidelity won't allow one to do this electronically online, but will do it over the phone.

If enough people write the CEO requesting the ability to contribute electronically, it will happen.

PM me if you want her email, but usually a written letter works better.
Not gonna happen. Fidelity's process is identical to Schwab's. There are ERISA regulations that strictly govern how and from which accounts an Individual 401k contribution can be made. They also need to know from the account holder what portion of your contribution is a salary deferral vs. the elective or profit sharing contribution. It costs these firms more money to take in non electronic deposits or to have you speak to a rep but the firms have no choice since federal laws govern these transactions.
This can all be easily done online. You can fill out a form that will tell Fidelity how much is employer profit sharing and how much is employee elections. Vanguard does this with their Solo 401(k)'s.

Regarding which accounts contributions can be made, if you can do it via telephone you can do it online electronically. Fidelity could restrict funding accounts to those that they approve.

damege
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Re: Fidelity solo 401k question

Post by damege » Fri Feb 01, 2019 9:39 am

The most efficient way I've found is to electronically transfer your contribution from your regular bank account to a fidelity regular cash/checking account, once its there call and have it transferred to the solo401k.

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serbeer
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Re: Fidelity solo 401k question

Post by serbeer » Fri Feb 01, 2019 3:39 pm

LeeMKE wrote:
Wed Jan 30, 2019 10:18 am
Unfortunately, you must mail in the checks with the instruction sheet signed.

Fidelity does not allow contributions to be delivered online.

I am guessing, but their interpretation of IRS regs may be that a live signature from both Admin and Employee is required (which in a Solo 401K is usually the same person).
It requires only either one of the parties to sign: Admin OR Employee. In my case, I am admin of my wife's Solo plan.

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serbeer
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Re: Fidelity solo 401k question

Post by serbeer » Fri Feb 01, 2019 3:44 pm

J295 wrote:
Thu Jan 31, 2019 9:33 am
We make our Solo 401k contributions each year with a phone call to Fidelity and the funds are transferred from one of our brokerage accounts into the designated solo 401k. In the phone call I designate the applicable year, the employer amount,and the employee amount.

As for depositing checks (into our brokerage account), we use the mobile app. on our phone for the few actual check deposits we have to make.
Interesting, did not realize one can do it by phone. Would not work for us though as we only have other 401Ks accounts at Fidelity. Could open new account just for this purpose I guess...

Btw, employer amount does not have to be designated by year btw, you do so on tax return itself. So profit-sharing you contribute from Jan. 1st to Apr. 17 this year can be designated on your tax return for either 2018 or 2019 (I only realized it this year btw).

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southerndoc
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Re: Fidelity solo 401k question

Post by southerndoc » Fri Feb 01, 2019 4:43 pm

serbeer wrote:
Fri Feb 01, 2019 3:44 pm
J295 wrote:
Thu Jan 31, 2019 9:33 am
We make our Solo 401k contributions each year with a phone call to Fidelity and the funds are transferred from one of our brokerage accounts into the designated solo 401k. In the phone call I designate the applicable year, the employer amount,and the employee amount.

As for depositing checks (into our brokerage account), we use the mobile app. on our phone for the few actual check deposits we have to make.
Interesting, did not realize one can do it by phone. Would not work for us though as we only have other 401Ks accounts at Fidelity. Could open new account just for this purpose I guess...

Btw, employer amount does not have to be designated by year btw, you do so on tax return itself. So profit-sharing you contribute from Jan. 1st to Apr. 17 this year can be designated on your tax return for either 2018 or 2019 (I only realized it this year btw).
Can actually go out to October 15 if you file an extension. According to spirit rider, you can file the extension, pay your taxes earlier (in June or July for example), and still have until October 15 to contribute to the 401(k).

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