New SOLO 401k question re: Roth functionality

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lifix
Posts: 13
Joined: Tue Nov 21, 2017 4:25 pm

New SOLO 401k question re: Roth functionality

Post by lifix » Sat Dec 16, 2017 3:23 pm

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?

livesoft
Posts: 62717
Joined: Thu Mar 01, 2007 8:00 pm

Re: New SOLO 401k question re: Roth functionality

Post by livesoft » Sat Dec 16, 2017 3:25 pm

You got it figured out.
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hawkfan55
Posts: 290
Joined: Thu Apr 03, 2014 9:04 pm

Re: New SOLO 401k question re: Roth functionality

Post by hawkfan55 » Sat Dec 16, 2017 3:45 pm

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!
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JBTX
Posts: 4045
Joined: Wed Jul 26, 2017 12:46 pm

Re: New SOLO 401k question re: Roth functionality

Post by JBTX » Sat Dec 16, 2017 5:09 pm

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.

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