When can I start making Roth Solo 401k contributions? | Solo 401k Plan Documents

QUESTION: If I establish a solo 401k, when can I start making Roth Solo 401k contributions?  

Thank you, Janet in Michigan

ANSWER: You may begin making Roth Solo 401k contributions as soon as you open a solo 401k from a solo 401k provider whose solo 401k plan documents allow for Roth contributions. Reason being, the solo 401k is not required to contain the Roth Solo 401k option as it is not an IRS requirement but rather a solo 401k plan document option.

Only the employee (salary deferral) contribution portion plus the catch-up amount (if you are age 50 or older) may be deposited to the Roth Solo 401k designated account.  As the Solo 401k rules do not allow for the commingling of pre-tax and post-tax contributions, separate bank accounts will need to be opened in the name of the solo 401k plan.

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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