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QUESTION: I am wondering if the 5 year clock on the Solo 401K Roth starts on January 1 of the year in which you open your brokerage/bank account like a regular ROTH IRA, or the clock starts ticking on the specific day you open the account?
The 5-year clock starts as of January 1 for the year the Roth solo 401k contribution was made for.
For example, if you make a Roth solo 41k contribution in 2022 for 2021 by your business tax return plus timely filed business tax return extension, the Roth solo 401k clock would start as of 01/01/2021.
