Roth Solo 401k Real Estate Transfer to Roth IRA Prior to RMD 70 1/2

QUESTION:

Can the Roth self directed solo 401k (CONTAINING real estate investment) be ROLLED OVER into a self-directed Roth IRA prior to 70 ½ to avoid the RMD requirement? 

ANSWER:

Yes based on current regulations as of the date of this blog post. However, if you have had the Roth 401k for less than 5 years at time of rollover, the ROTH IRA 5 year clock would apply. Therefore, if you have had the Roth IRA for 5 years the Roth IRA clock would have already been met. But if you are opening the Roth IRA for the first time at the time that the Roth solo 401k is being transferred to the Roth IRA, the 5 year clock would start over again. 

 

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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