Solo 401k

My client has a Traditional IRA with commingled pre-tax Rollover IRA funds from employer and after-tax contributions reported on Form 8606. Can my solo 401k plan document accommodate rollover of this account?

January 5, 2023 | By Mark Nolan

The pretax IRA funds (i.e., the earnings) and the rest of the pretax funds can get transferred to the solo 401k, but the basis would need to be converted to a Roth IRA. The IRA rules don’t allow for the after-tax IRA basis (i.e., the non-deductible IRA contributions) to be converted or transferred to the solo 401k.

About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>

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