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Establishing a rollover from Roth IRA to fund Solo401k
Posted by Shawna Newton on September 2, 2021 at 2:28 pmMy husband and I are looking to establish an exchange using funds from our IRA to avoid a tax penalty to invest in cryptocurrency. I’ve spoken to one exchange (Kraken) who said they can only rollover ‘like to like’ or IRA to IRA, not set up a personal account we could use to purchase coin pairs (bots). Is a Solo401k the only way to accomplish this? It seems crazy that we could get a check and deposit funds into our bank to wire over, but we’d have to pay heavy taxes on that because it would be considered income. All we want to do is rollover from one to the other as a direct investment and I can’t seem to find a way to do this without some sort of tax ‘punishment’ involved. The IRA is managed. We do own an LLC that has not been getting income.
George Blower replied 2 years, 6 months ago 2 Members · 2 Posts -
1 Reply
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Shawna Newton
September 2, 2021 at 2:28 pmMy husband and I are looking to establish an exchange using funds from our IRA to avoid a tax penalty to invest in cryptocurrency. I’ve spoken to one exchange (Kraken) who said they can only rollover ‘like to like’ or IRA to IRA, not set up a personal account we could use to purchase coin pairs (bots). Is a Solo401k the only way to accomplish this? It seems crazy that we could get a check and deposit funds into our bank to wire over, but we’d have to pay heavy taxes on that because it would be considered income. All we want to do is rollover from one to the other as a direct investment and I can’t seem to find a way to do this without some sort of tax ‘punishment’ involved. The IRA is managed. We do own an LLC that has not been getting income.
Shawna Newton -
George Blower
September 2, 2021 at 4:02 pmThank you for posting your question!
I understand that you are asking whether you can transfer Roth IRA funds to a Solo 401k.
1.408a-10 Q&A 5 and IRS Publication 590 state that a Roth IRA cannot be transferred/ rolled over to an employer retirement plan which includes a Solo 401k plan.
Learn more: https://www.mysolo401k.net/can-rollover-roth-ira-roth-solo-401k/
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