Solo 401k Question Answered – Does IRA Pro Rata Rule Apply to Mega Backdoor Roth Solo 401k?
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Solo 401k FAQ: Will I be able to convert funds to a Roth IRA without being subject to the pro-rata rule?
I am looking to set up a Solo 401k in order to make voluntary after-tax contributions and then convert such funds to a Roth IRA. Will I be able to convert funds to a Roth IRA without being subject to the pro-rata IRA rules?
RESPONSE:
Yes – the IRA pro-rata rules don’t apply to funds converted from your Solo 401k.
