Are transfers from the Roth portion of my prev 401K allowed to my solo 401k?

[Bill Moyer]

I’m wanting to satisfy the remaining 5 year rule (I’m over 59 1/2) on my new solo 401K Roth account by transferring in a small portion of funds from my previous employer’s 401k Roth subaccount, to get that earlier first contribution date, Is this allowed by the mySolo401k plan documents? Anythng special to be aware of?

Oh, and both accounts are held at Fidelity.

thanks, -Bill

Bill Moyer

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[Bill Moyer]

NVM, I called Fidelity and sorted this out. They have to issue a paper check, FMTC – FBO “my name”, then I can deposit into any Roth IRA, or non-prototype mySolo401k Roth account there..

Bill Moyer

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[Mark Nolan]

My Solo 401k Financial’s plan document allows rollovers from other Roth 401k plans, Roth 403b, Roth 457, and Roth TSP in unlimited amounts. So the rollover itself is fully supported. And the five-year rule treatment you’re counting on is real and well-documented.

The five-year period is generally determined separately for each plan, including Roth Solo 401k plans. However, if a direct rollover is processed from a former employer Roth 401k to the Roth Solo 401k, the five-year period is the earlier of the two plans’ five-year periods. That is exactly what you’re trying to accomplish — and it works.

Five-Year Period

This five-year period begins with the earlier of:

1) the first taxable year for which the solo 401k participant made employee Roth solo 401k contributions under the solo 401k plan, or

2) the first taxable year the solo 401k participant made Roth contributions to a former employer’s retirement plan (AKA Roth 401k, Roth 403b, ROTH 457b or Roth 403b), which was directly rolled over to the distributing retirement plan (the Roth solo 401k)

• The five-year period generally is determined separately for each plan including Roth solo 401k plans.

• If a direct rollover was processed from a former employer Roth 401k, for example, to the Roth Solo 401k, the the five-year period is the earlier of the two plans’ five-year periods. This same rule also applies to direct rollovers from an alternate payee or spouse beneficiary.

• For an indirect rollover (a 60 day rollover), the five-year period under the distributing plan (e.g., the former employer Roth 401k) does not apply to the receiving plan (i.e., the Roth Solo 401k plan).

mysolo401k.net

Roth Solo 401k Rules: Contributions, Distributions & Transfers - My Solo 401k Financial

Lean about Roth Solo 401k or Roth Self-Directed Contribution rules; Easy to read Roth Solo 401k Chart provided.

Mark Nolan

Compliance Officer

Contact

1-800-489-7571 www.mysolo401k.net

[Bill Moyer]

Mark, thanks for all the additional details. Very helpful!

Bill Moyer

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