Ask Terry Questions 401 solo plans

401 solo plans

By Terry Savage on October 09, 2023 | Financial Planning / Retirement

Hi Terry.
I am 66 and on social security . i have about 75 thousand dollars in my 401 k plan that i do not plan on using for at least the next 4 years or more . it has not done much in the last couple of years and i was thinking of transferring it to to a 401 solo plan with checkbook control so that i could use it to buy T Bills . so that i would at least be making some money on it instead for it just sitting there not doing much. what do you know about this and do you think it is a good idea?
Thanks

Terry Says

No, you can’t do that. The Treasury doesn’t act as custodian for ANY retirement plans.
But you could do a direct rollover to an IRA, at a place like Fidelity or Schwab or Vanguard, where there is a brokerage option. Then you could buy T-bills, with them as custodian.
OR, you could just move the money in to a Treasury-only money market fund.

Her are the instructions for doing a direct rollover, assuming you are retired and have left the company, and are allowed to do so.
https://www.terrysavage.com/rollover-now/

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