Roth Solo 401(k) Portability

Thanks to the Pension Protection Act (PPA) of 2006, 401k plans including solo 401k plans may allow for Roth 401k contributions (also known as a Roth contribution program) that allows solo 401k participants to treat their employee solo 401k contributions as Roth solo 401k contributions.

The regulations also allow for individuals to transfer their former employer Roth 401k funds, Roth 403(b), or Roth governmental 457(b) to a Roth Solo 401k.

Plan-to-Plan Rollovers

Before accepting a Roth 401(k) transfer, Roth 403(b) transfer or a 457(b) transfer, the solo 401k trustee should understand the following:

  • A Solo 401k plan cannot accept rollovers of  Roth 401k, 403b or 457b funds (also know as designated Roth account funds) unless the solo 401k plan permits participants to make Roth solo 401k elective deferrals.
  • Roth 401(k), Roth 403(b) and 457(b)  accounts may be directly rolled over to a solo 401k retirement plan that has a designated Roth 401k program. IMPORTANT NOTE: A ROTH IRA may not be transferred to a solo Roth 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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