ForumsSolo 401kTypes of Accounts Needed in Solo401K

Forums Solo 401k Types of Accounts Needed in Solo401K

  • Types of Accounts Needed in Solo401K

    1 Reply
  • Roberta Eastman

    Top SubjectSolo 401k,Mega Backdoor Roth Solo 401k
    Top ForumsSolo 401k, Mega Backdoor Roth Solo 401k

    Roberta Eastman

    Roberta Eastman

    Top SubjectSolo 401k,Mega Backdoor Roth Solo 401k

    December 1, 2021 at 3:27 pm

    Hello

    Do I need to have a Pre-tax Solo401K account or can I just go with ROTH Solo401k and Voluntary After Tax Solo401K sub accounts?

    Thank you

    Roberta

    PS: Thank you for such excellent guides and year end presentation material. Extremely Helpful!!

    Roberta Eastman
  • Mark Nolan

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

    Mark Nolan

    Mark Nolan

    Top SubjectSolo 401k,Solo 401k Contributions

    December 2, 2021 at 10:08 am

    @Roberta

    Roberta Eastman

    Top SubjectSolo 401k,Mega Backdoor Roth Solo 401k

    While the solo 401k allows for multiple sources (e.g., Roth, prtax and after-tax), the IRS still views it as one solo 401k plan. Separate holding accounts are opened under the one solo 401k to hold each source of fund. Therefore, if you do not plan to make pretax solo 401k contributions, a pretax holding account is not required to be opened unless you transfer IRAs or other pretax qualified plan funds to the pretax solo 401k holding account.

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