How to contribute to Vanguard i401k?

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jks1985
Posts: 51
Joined: Thu Dec 14, 2017 4:25 pm

How to contribute to Vanguard i401k?

Post by jks1985 » Thu Dec 14, 2017 4:29 pm

I created an i401k with Vanguard and it looks like it doesn't let me contribute funds through my taxable account. I wanted to just transfer over some funds from my money market into my i401k.

Do I need to transfer this money back to my checking account and then contribute to my 401k?

tj
Posts: 2148
Joined: Thu Dec 24, 2009 12:10 am

Re: How to contribute to Vanguard i401k?

Post by tj » Thu Dec 14, 2017 5:28 pm

jks1985 wrote:
Thu Dec 14, 2017 4:29 pm
I created an i401k with Vanguard and it looks like it doesn't let me contribute funds through my taxable account. I wanted to just transfer over some funds from my money market into my i401k.

Do I need to transfer this money back to my checking account and then contribute to my 401k?
There's a different login for the small business account. You do it through there. I believe you can change the fund allocation in the regular login after the funds are contributed.

jks1985
Posts: 51
Joined: Thu Dec 14, 2017 4:25 pm

Re: How to contribute to Vanguard i401k?

Post by jks1985 » Thu Dec 14, 2017 7:00 pm

Sorry If I wasn’t clear.
I know how to login to my i401k account. I have the small business login info.
I just want to know, do I need to contribute via wire transfer (from a checking account) or by sending in a personal check? Cause those are the only two options I see at the moment.
I would prefer to contribute via my brokerage account (at Vanguard or TD ameritrade) rather than transferring funds back to my personal checking account and then wiring the money into my i401k.

Spirit Rider
Posts: 8705
Joined: Fri Mar 02, 2007 2:39 pm

Re: How to contribute to Vanguard i401k?

Post by Spirit Rider » Thu Dec 14, 2017 8:36 pm

How isn't the only consideration. Where from; depending on type of business entity matters.
  • Corporation (S or C): Employee deferrals and employer contributions must come from corporation accounts.
  • Partnership or disregarded multi-member LLC: Employee deferrals and employer contributions must come from partnership or LLC accounts.
  • Disregarded single member LLC: Employee deferrals may come from personal funds, but if employer contributions do not come from LLC accounts, that could be used to pierce the LLC's veil. Best practice is for both to come from LLC accounts.
  • Sole Proprietorship: Employee deferrals and employer contributions can come from either personal or business accounts. Best practice is for employer contributions to come from business accounts if they exist.

jks1985
Posts: 51
Joined: Thu Dec 14, 2017 4:25 pm

Re: How to contribute to Vanguard i401k?

Post by jks1985 » Thu Dec 14, 2017 10:08 pm

It's a single member LLC

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