Self-employed Solo 401k Question Answered – Is there a limit on IRA Rollovers to my Solo 401k?
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Solo 401k FAQ: I’m just learning about the solo 401(k). Our CPA mentioned that the contribution amount is based on my self-employment, which made sense. I saw that I might be able to transfer my traditional IRA to the solo 401k – is there a particular limit to the amount to be transferred? It is currently in stocks or mutual funds at Fidelity – will I be able to keep Fidelity as the brokerage?
RESPONSE
Great questions! Of course, the prerequisite to be able to set up a solo 401(k) is that one has to be self-employed with no full-time W-2 employees.
One who is eligible to set up a Solo 401k can certainly set up a solo 401(k) plan with us and there is no limit to answer on the amount of funds that you roll into the plan (i.e. the solo 401k owner can roll over as much as the solo 401 owner wishes from the IRA and whichever frequency desired).
We will handle the transfer process such as preparing the paperwork to initiate a direct rollover to the Solo 401k. It is important that the rollover is handled correctly as the IRA provider must report the transfer and so it is important that the transfer is reported correctly as a non-taxable direct rollover to the Solo 401k.
As part of the Solo 401k establishment process, we prepare paperwork to help our clients open accounts for their Solo 401k at the bank and/or brokerage of their choice. One of the most popular options is Fidelity so we would certainly prepare the paperwork to open brokerage accounts for the solo 401k at Fidelity.
