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Individual 401k FAQ: I have an existing solo 401(k) in Roth solo 401(k) with TD Ameritrade. I would also like to form a self-directed Roth solo 401(k) with your service. TD Ameritrade is discontinuing Roth solo 401(k)’s. So I need to change over to Fidelity or a similar brokerage. How can I accomplish this?
Great question!
This is a very common scenario for us as a lot of our clients start out with a basic solo 401(k) plan at TD Ameritrade, Fidelity, etc. and then wish to upgrade to our plan to take advantage of features and service that we offer such Mega Backdoor Roth, the fact that we prepare the 5500, including submitting electronically to the IRS, that we prepare the 1099-R, the ability to have a solo 40k1 loan, invest in alternative investments or all of the above.
It’s helpful to understand that a solo 401(k) is a legal entity so like any legal entity it is the documents that create the plan.
So right now, you have TD Ameritrade’s plan documents which as noted no longer allows for Roth solo 401(k) funds.
In order to keep the Roth Solo 401k feature, the plan documents need to be restated to a the documents offered by a provider such as us that offers a plan that supports Roth Solo 401k and even Mega Backdoor Roth Solo 401k funds.
To restate the plan, simply sign up with us and we will draft and email you a link to our secure portal where you can access the restated plan documents within the same day or 24 business hours.
We will then guide you through the process to open new accounts (which new accounts can still be at TD Ameritrade). We will also prepare the paperwork to transfer the cash and assets from the existing accounts to the new accounts.
