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New SOLO 401k question re: Roth functionality

Posted: Sat Dec 16, 2017 3:23 pm
by lifix
Howdy y'all - In November I submitted the paperwork with Vanguard to transfer in my IRA, and to open a Roth SOLO 401k.

The accounts are open, and I was poking through online access last night, and I discover that I can only make employEE contributions to the 401k. It takes me a second to realize that, of course, I can't make employER contributions to a Roth 401k... right? If I have a Roth SOLO 401k, that accepts EE donations only, so I'll also need a traditional SOLO 401k to make employER contributions?

Re: New SOLO 401k question re: Roth functionality

Posted: Sat Dec 16, 2017 3:25 pm
by livesoft
You got it figured out.

Re: New SOLO 401k question re: Roth functionality

Posted: Sat Dec 16, 2017 3:45 pm
by hawkfan55
so I'll also need a traditional SOLO 401k to make employER contributions?
Yes, because employers are not allowed to contribute to Roth 401k regardless of whether it is Individual (solo) or employer sponsored. I had my Individual 401k with Vanguard (now closed due to recent retirement). It was great to have options to put my employee contributions in either Roth or Deferred and my employer contributions into Deferred!

Re: New SOLO 401k question re: Roth functionality

Posted: Sat Dec 16, 2017 5:09 pm
by JBTX
As I recall when you set it up both the employee and employer side are set up. You should be able to go on the Vanguard small biz site (not the regular investor site) where it allows you to make contributions to the employer and employer side.

Yes the employer side will be traditional so a separate account is set up for that.