Solo 401k Plan Funding Contribution Question

QUESTION: Can I open a bank account for my self-directed Solo 401k account by making a regular deposit (transferring funds from the SEP may take a while)? If so, up to how much can I deposit in the new account?

Thank you kindly


ANSWER: Yes you can fund your new Solo 401k by making an annual Solo 401k contribution and wait to transfer your SEP IRA next year, as there is no time restriction in directly transferring a SEP IRA a Solo 401k plan.

If your self-employed business type is a corporation, the contribution is based on your W-2 income. The maximum contribution amount for 2012 tax year is $50,000 plus an additional $5,500 if you are 50 years or older.

You can use our Solo 401k contribution calculator to calculate your maximum Solo 401k contribution amount.

Further, when making the Solo 401k contribution, make the check payable in the name of the Solo 401k and write “Solo 401k Annual Contribution” on the memo section of the check.  You may also use our Solo 401k contribution form which is located on our forms tab to document the Solo 401k contribution.

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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