A bi-directional clutch assembly, method of construction thereof and method of setting a preset gap between a magnetically permeable core and armature thereof is provided, An outer race has inner ratchet teeth and an inner race has outer ratchet teeth. A passive one-way clutch has passive struts pivotally supported for locked engagement with the inner ratchet teeth in a first direction. A selectable one-way clutch has an active strut selectively pivotal from an unlocked position to a locked position for engaging the outer ratchet teeth during rotation of the inner race in a second direction opposite the first direction. A protrusion extends radially outwardly from the outer race and has an orifice extending therethrough. A coil is operably supported by the protrusion. The magnetically permeable core is operably fixed in the orifice to be magnetized by the coil to move the at least one active strut to the locked position.