Solo 401k question

[nick...@gmail.com]

Can a freelancer set up more than one self-directed 401k at different brokers?

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[Alan]

On 8/24/16 8:02 PM, nick...@gmail.com wrote:
> Can a freelancer set up more than one self-directed 401k at different brokers?
>

The rules allow you (self-employed individual) to have more than one
qualified retirement plan. E.g., you could have two Solo 401K accounts
with different plan administrators. Why you would want to do this is
beyond me as your annual contribution limit is the same regardless of
how many accounts you have.
I.e., your maximum annual contribution is $53,000 not counting catch-up
contribution of $6000 if you are age 50.

[Alan]

On 8/29/16 1:56 PM, Alan wrote:
> On 8/24/16 8:02 PM, nick...@gmail.com wrote:
>> Can a freelancer set up more than one self-directed 401k at different
>> brokers?
>>
> The rules allow you (self-employed individual) to have more than one
> qualified retirement plan. E.g., you could have two Solo 401K accounts
> with different plan administrators. Why you would want to do this is
> beyond me as your annual contribution limit is the same regardless of
> how many accounts you have.
> I.e., your maximum annual contribution is $53,000 not counting catch-up
> contribution of $6000 if you are age 50.
>

I wanted to add that I did think of a reason for opening multiple
accounts. It's commissions and expenses on certain mutual funds
purchased at a brokerage vs the mutual fund company.