Independent Contractor Solo 401k – SEP IRA Rollover to 401k


QUESTION: I am an independent contractor who is eligible to open a Solo 401k.  Unfortunately, I missed the December 31st Solo 401k deadline.  I currently max out my annual SEP IRA contribution (~$59k/year). If I put this $59k into my SEP IRA, how long do I need to wait before this money can be rolled over to the Solo 401k?

ANSWER: While you are correct that the deadline to establish a Solo 401k has passed, you can rollover funds from the SEP IRA to the Solo 401k without any waiting period.  For example, see the IRS Rollover Chart which makes clear that you can rollover funds from a SEP IRA to a qualified plan such as our Solo 401k plan.  Please note that we handle rollover process as part of our standard Solo 401k pricing for no additional charges.

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About George Blower

I have the privilege of educating our clients about our products and services so that they can make informed and confident decisions about their financial future. Prior to joining My Solo 401k Financial, I served as the general counsel for a subsidiary of a Fortune 500 financial services company. Learn more about George Blower and My Solo 401k Financial >>

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