QUESTION: I want to transfer my Roth IRA with Equity Trust to your solo 401k. Can you please provide guidelines for processing it as a direct rollover?
Regards, Dawn in FL
ANSWER: While the 401k regulations allow for annual Roth 401k contributions, the regulations do not permit for the transfer of Roth IRA funds to a 401k, whether a 401k for the self-employed such as a solo 401k, or a traditional 401k for full-time employees. Moreover, the regulations further restrict the transfer of a Roth IRA to the designated Roth account portion of the 401k (commonly referred to as a ROTH Solo 401k or Roth 401k).
The restriction with respect to not being allowed to transfer or direct rollover a ROTH IRA to a 401k is listed in IRS Publication 590-A. CLICK HERE to read about this restriction.