roll solo 401K into a company 401K

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liuruyu
Posts: 32
Joined: Thu Jul 26, 2012 1:20 pm

roll solo 401K into a company 401K

Post by liuruyu »

If one is self-employed and established a solo 401k. Can you roll that into a company group 401K plan later if you find a job with a w-2? Thx!
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JamesSFO
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Joined: Thu Apr 26, 2012 10:16 pm

Re: roll solo 401K into a company 401K

Post by JamesSFO »

Generally yes, e.g. if you close down the business and meet the criteria for a (rollover) distribution.

But you cannot have your cake and eat it to, e.g. keep the solo 401K active and keep contributing but move assets around.

(there are other exceptions, e.g. many solo 401k's allow corporate/employer contributions to be rolled out always after 2 years, etc.)
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retiredjg
Posts: 54082
Joined: Thu Jan 10, 2008 11:56 am

Re: roll solo 401K into a company 401K

Post by retiredjg »

If the company 401k accepts rollovers, yes. Most do.

But if the expenses are low, there can be some benefit in leaving the money in the old plan.
Topic Author
liuruyu
Posts: 32
Joined: Thu Jul 26, 2012 1:20 pm

Re: roll solo 401K into a company 401K

Post by liuruyu »

Thank you guys! Understood, if it is going to roll into the company 401K, most likely the solo 401K would be closed down (terminated).
Spirit Rider
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Joined: Fri Mar 02, 2007 1:39 pm

Re: roll solo 401K into a company 401K

Post by Spirit Rider »

What is the perceived benefit that would cause you to want to terminate your Solo 401k and roll it over? You have full control over the Solo 401k plan. You can change the provider that gives your choice of lowest costs, best products, and services. You can choose to rollover other retirement plans when you leave employers, rollover IRA accounts. Preserve you ability for backdoor Roth IRA contributions, etc...
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southerndoc
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Joined: Wed Apr 22, 2009 7:07 pm
Location: Atlanta

Re: roll solo 401K into a company 401K

Post by southerndoc »

Spirit Rider wrote:What is the perceived benefit that would cause you to want to terminate your Solo 401k and roll it over? You have full control over the Solo 401k plan. You can change the provider that gives your choice of lowest costs, best products, and services. You can choose to rollover other retirement plans when you leave employers, rollover IRA accounts. Preserve you ability for backdoor Roth IRA contributions, etc...
Actual 401(k)/403(b) plans with employers have better ERISA protection and are protected from creditors.
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