Can I Transfer Current Employer 401k to Self-Directed Solo
401k?
I'm working full time, and our company has a self administered 401k plan (the
employer is the trustee) , of which I have an account. I haven't made a
contribution to the account for over a year, and neither has my employer.
If I start my own company, and a Self-Directed Solo 401k to go with that, do you think there would be any problems
transferring the funds from my current 401k employers plan to my new self-employed
Self-Directed Solo 401k plan, trustee to trustee, while still employed
with my current employer? Or is the only way to move those funds is if I
"officially" quit from the company?
The regulations allow the employee/participant to transfer contributions made to his 401k with his or her current employer. However, employer contributions generally cannot be transferred out until you leave the employer.
I suggest asking your current employer for copy of the Plan Document so that we can try to identify language in the plan that allows for the transfer of employee contributions even while still employed.
Lastly, the rules allow for multiple 401ks; you just can't contribute over the annual limit between them all.
Following blogs will shed more light on multiple 401ks:
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