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Self-employed Solo 401k Question: I am looking to set up a Solo 401k in order to invest in real estate. If I rollover funds from my rollover IRA to the Solo 401k, will I need to pay taxes on the amounts rolled over?
Great question!
No – the funds will be transferred as a non-taxable direct rollover (i.e. the transfer is reportable but not taxable).
One of the most popular ways to fund the solo 401(k) is to rollover money from a pre-existing retirement account like a former employer plan or non-Roth IRA.
As part of our Solo 401k establishment process, we guide our clients through the transfer process: whether that’s preparing transfer paperwork, providing online instructions etc.
We have deep experience having helped 1000s of clients rollover funds from 100s of different financial institutions (e.g. IRA at Vanguard, former employer plan at Fidelity, etc.) and we can leverage that experience to make the process easy for our clients.
