Funding After-Tax Solo 401k Contribution3 Replies
Top ForumsRollover Funds into Solo 401k, Solo 401kSeptember 25, 2021 at 7:04 am
I’m planning to contribute to the after-tax portion of my solo 401k for 2021 in short order (at Charles Schwab). Can I directly contribute to it by ACH using my personal checking account?
Top ForumsSolo 401k, Rollover Funds into Solo 401kSeptember 25, 2021 at 1:52 pm
In short, no, as Schwab does not allow for it.
Schwab won’t allow you to electronically transfer funds to the brokerage account from an external account not titled in the name of the solo 401k plan.
One option is to open an account at a bank in the name of the Solo 401k so that you can make contributions to the bank account (which would count as contribution to the plan since in the name of the plan) and then electronically transfer funds from the Solo 401k bank account to the brokerage account at Schwab.
A second option is to open a brokerage account at Schwab in your name, fund the brokerage account in your name, and then transfer the funds from the brokerage account in your name to the brokerage account in the name of the solo 401k plan (subject to the contribution limits, deadline, etc.).
Top ForumsRollover Funds into Solo 401k, Solo 401kSeptember 25, 2021 at 2:43 pm
Hi Mark –
Thank you for your prompt response. What if I do the “old school” way: write a paper check payable from my personal checking account and addressed to “Charles Schwab” with the account number listed on the check? Would that work?
As a corollary, my firm is planning to do employer pre-tax contributions the same way: write a paper check; just wanted to make sure that that is okay as well.
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