QUESTION:
We are confident that my former employer 401K money will be rolled over to my new
Solo 401k account by December 31st.
At this time, can I transfer funds from my former employer 401k plan to my solo
401K Roth account, or is there any formalities to be fulfilled before I
initiate the transfer?
Any incite would be greatly appreciated, thanks Thomas
ANSWER: The Solo 401k Roth rules require that you first transfer your former
employer pre-tax 401k funds to the pretax portion of your new Solo 401k plan. Subsequently, you can
process an “in-plan” Roth conversion, requiring the establishment of a
designated Roth Solo 401k account (bank account) to hold the Roth funds.
Please read following blog from our website that explains
the in-plan conversion process and then let me know when you are ready to proceed
as conversion forms will need to be filled out and tax reporting performed. We
can process the Roth Solo 401k conversion, a service not provided by all Solo 401k providers, at no additional
cost.
EVERYTHING you need to know about 401k (History, Taxation, Fees, Withdrawal of funds, RISK) ETC
ReplyDeleteMost Americans are aware they save too little for retirement, giving themselves a letter grade of “C” or lower
Tax planning for your business may be the difference between turning a nice profit and barely keeping the doors open. Similarly, making smart tax moves may free up more money to save for a secure retirement
.
Using a Solo 401(k) may allow you to invest more for your future and get some nice tax deductions along the way.
Read More @ EVERYTHING you need to know about 401k (History, Taxation, Fees, RISK) ETC