Issue Setting up Individual 401K Account

ncushi

I just opened a new individual 401K Account at Charles Schwab. I am a single member LLC, but this is an Individual 401K, not a SEP IRA.

However, when connecting to Schwab, the account type picked was brokerage - when I tried to change it, 401K is not an account type option. Do I select SEP IRA (even though this is different and there will be different types of contributions for individual and employer like other 401K's.)?

Tom Young

I'm not sure how you went about doing this, but what I would do is first set up the Account as a Manual Account with Account type of 401(k). You can leave the Financial Institution and Account number blank at this point. Once the Account is established to your satisfaction click "Set up Now" under the Online Services tab and connect it to your account a Schwab.