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Individual 401k FAQ – Do I need separate brokerage accounts for my Pre-tax and Roth Solo 401k funds?
QUESTION:
I set up a Solo 401k in order to make both pre-tax and Roth Solo 401k contributions. Do I need to keep my pre-tax and Roth Solo 401k funds in separate accounts or can I pool the funds in one account?
RESPONSE:
Great question as the ability to make Roth and/or Mega Backdoor Roth Solo 401k contributions is one of the top reasons that clients open accounts with us.
Pre-tax, Roth, and Voluntary After-tax (Mega Backdoor Roth) Solo 401k funds must be kept in separate accounts.
As part of the Solo 401k establishment process, we help our clients to open accounts for their Solo 401k plans at the bank/credit union and/or brokerage of choice.
