How to Avoid Custodian Fees for a Solo 401k

The solo 401k is a type of retirement account that an individual can set up if he is self-employed. This type of account has several benefits for the investor, but you do not want to have to pay excessive custodian fees for it. Here are the basics of how to avoid custodian fees for a solo 401k.

Shop Around

When you are looking for a custodian for your solo 401k, you should definitely shop around with multiple financial institutions. Some of the financial institutions out there are going to charge you custodian fees. Other financial institutions do not charge any custodian fees in return for taking care of your money for you.

Name Yourself Trustee

Another option that many people do not realize that they have is to name themselves the trustees of their accounts. With this type of account, you can actually be your own trustee. This means that you can put the money anywhere you want, and it will still count as a solo 401k. When you do this, you will have to file some basic paperwork with the IRS, but this process is not very difficult. By doing this, you will be able to avoid custodian fees.