Can I transfer Existing Solo 401k Funds to an IRA?

QUESTION:

Will I be able to rollover some of my 401k solo funds to another trading IRA account ?

ANSWER:

The solo 401k already allows for investing in stocks or mutual funds, so we can assist you in opening a Fidelity or Schwab brokerage account, for example.
However, if you still want to transfer some of your solo 401k funds to an IRA,  the type of solo 401k funds you can directly rollover will be dependent upon the source of those funds. While a direct-rollover is non-taxable, it is considered a type of a distribution under the rules.  Therefore, the distribution rules as outlined in the following links would apply and are dependent upon whether the funds you wish to directly rollover stem from  (i) After Tax and Rollover contributions (2) Employer Contributions, or (3) Employee contributions, and/or whether certain triggering events apply.  Please let us know if you will  process a direct-rollover to an IRA so we can guide through the process (as we would need to prepare a form 1099-R with regard to the direct-rollover for reporting purposes.)
Please review the links provided below and email me if you have any additional questions, or we can set up a time to discuss further.

 

 

About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>

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