Forums Solo 401k Solo 401k Distributions Roth Solo 401k

  • Roth Solo 401k

    1 Reply
  • Travis K.

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

    Travis K.

    Travis K.

    Top SubjectSolo 401k,Solo 401k Contributions

    November 10, 2021 at 8:31 am

    I am a solo contractor and I’m confused how a solo roth 401k works.

    I understand all of the details about contribution limits on the employee side and the employer side.

    I understand and will be taking advantage of the full employee $19,500 roth contribution.

    I will also be taking advantage of some portion of the employer contribution side which would be a tradition (non roth) type.

    I’m confused how these are differentiated when I buy stocks, because they will be treated completely differently many years later when I’m 70 years old and decide to cash out.

    I talked to TD Ameritrade where I will be opening the account at and they told me that they don’t distinguish between the two types and that I need to talk to an accountant.

    If that is true then is it true that I can determine which tax classification I want when I decide to sell stocks when I’m 70? That seems like cheating but of course I will do that If I’m allowed.

    I will choose my highest growers and just say yep that was what I bought with my roth contribution portion.

    Seems crazy so maybe that’s wrong

    Travis K.
  • Mark Nolan

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

    Mark Nolan

    Mark Nolan

    Top SubjectSolo 401k,Solo 401k Contributions

    November 10, 2021 at 11:39 am

    @Travis Klein

    The solo 401k sources (roth vs pretax) are separately labeled when both brokerage accounts are established. The IRS requires each source type (roth and pretax, for example) separately tracked which is accomplished by having separate brokerage accounts for each source.

Related Blog Posts