A solo 401k from My Solo 401k Financial allows for the conversion of pretax solo 401k funds to the Roth solo 401k. For client’s who use My Solo 401k Financial as the solo 401k plan document provider and use Schwab as the brokerage firm to hold the solo 401k funds, the pretax solo 401k funds can be converted internally within Schwab to the Roth solo 401k.
Using Schwab’s Form To Internally Move the Funds
To logistically transfer funds electronically from the pretax solo 401k plan holding account to the Roth solo 401k plan holding account, fill out the Schwab form titled “Move Assets from My Schwab Brokerage Account.”
Click Here to download their form. Alternatively, you can use the “Move Money / Online Transfer” option on the Schwab website, and if you use this method, please be sure to let us know about the conversion once it has occurred:
Pre-Tax to Roth Solo 401kSubmitting the Form to Schwab
Return the completed form by using Secure Messaging on Schwab.com or SchwabAlliance.com or Fax to Schwab at 888-526-7252.
Our On-Line Conversion Form
After you have Schwab transfer the funds, the next step is to log the in-plan conversion on our website using link below:
2024 Pretax to Roth Solo 401k In-Plan Conversion Form
After you log the amount on our website, we will have the information we need to prepare 2026 Form 1099R. We provide 2026 Form 1099R to clients by the end of February of 2027.
You will pay income tax for the in-plan conversion when you file your Form 1040 by April of 2025.
Consider Taxes
In-plan Roth solo 401k conversion of pretax funds are subject to taxes. Your Roth solo 401k conversion income will increase your ordinary income for 2026.
Coordinate with your tax professional if this increase in 2026 income may cause the loss of exemptions, credits, tax deductions, taxation of Social Security, or increased premiums for Medicare Part B and Part D.
This ordinary income increase from in-plan conversion only happens for the year of the conversion
