ForumsTransfers/RolloversDirect Rollover fund between solo401k and Traditional IRA

Forums Solo 401k Transfers/Rollovers Direct Rollover fund between solo401k and Traditional IRA

  • Direct Rollover fund between solo401k and Traditional IRA

    2 Replies
  • Jan Pevzner

    Top SubjectTransfers/Rollovers,Solo 401k Contributions
    Top ForumsTransfers/Rollovers, Solo 401k Contributions

    Jan Pevzner

    Jan Pevzner

    Top SubjectTransfers/Rollovers,Solo 401k Contributions

    May 19, 2022 at 9:00 am

    I would like to roll some funds from my Solo 401 held with Fidelity to a Traditional IRA at IB.

    My questions are:

    – Ater there any restrictions (frequency, etc.) on moving funds from mysolo401k plan to a Traditional IRA?

    – Are there any restrictions on later moving these funds back from Traditional IRA to mysolo401k plan?

    – What IRS reporting do I need to do?

    – If I have funds in Traditional IRA and attempt to do a mega backdoor conversion with the MySolo401k plan, are the funds in Traditional IRA affected by the pro-rata rule?

    Thank you

  • George Blower

    Top SubjectSolo 401k,Solo 401k Contributions
    Top ForumsSolo 401k, Solo 401k Contributions

    George Blower

    George Blower

    Top SubjectSolo 401k,Solo 401k Contributions

    May 20, 2022 at 3:19 am

    Thank you for your post

    @JanPevzner

    Jan Pevzner

    Top SubjectTransfers/Rollovers,Solo 401k Contributions

    1) One must typically be at least 59.5 years of age before one can transfer funds from a Solo 401k to an IRA. See more: https://www.mysolo401k.net/making-solo-401k-distributions/

    2) Funds that are in a Traditional IRA can be rolled over to a Solo 401k without restriction and we will handle the transfer process as part of our services for no additional charge.

    3) The transfer of funds from a Solo 401k to an IRA must be reported on a 1099-R. We will prepare the 1099-R as part of our services for no additional charge – clients simply need to complete our online form to provide us the information needed: https://www.mysolo401k.net/learn/forms/

    4) With respect to a Mega Backdoor Roth Solo 401k, the pro-rata rules apply at the Solo 401k sub-account level and funds in an IRA are not considered.

  • Jan Pevzner

    Top SubjectTransfers/Rollovers,Solo 401k Contributions
    Top ForumsTransfers/Rollovers, Solo 401k Contributions

    Jan Pevzner

    Jan Pevzner

    Top SubjectTransfers/Rollovers,Solo 401k Contributions

    May 20, 2022 at 9:46 am

    Thank you, George.

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