Solo 401k and rollover IRA

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robiu977
Posts: 74
Joined: Tue May 29, 2007 2:46 pm

Solo 401k and rollover IRA

Post by robiu977 »

Hello, hopefully a quick and straightforward question. My wife has a rollover IRA in VG. She just opened a solo 401k at VG last year. I should have opened a solo 401k that accepts a rollover so will likely move to TD Ameritrade so we can do a backdoor Roth and avoid the pro rata rule. Do you know if I need to close down the current solo 401k as well or can I just move the rollover IRA to TDA (into a solo 401k) and would then have two separate solo 401k's? Hopefully that makes sense, thank you!
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ICMoney
Posts: 371
Joined: Fri Oct 28, 2016 2:38 pm

Re: Solo 401k and rollover IRA

Post by ICMoney »

Spirit Rider should hopefully be along soon to provide a detailed response... but in the meantime - no, you can't have two separate solo 401ks. TDA (or whichever vendor is taking over the plan) will need to work with you to amend the solo 401(k) plan to change service provider.

I wanted to point you to my post as follows (viewtopic.php?f=1&t=302493&p=4992829#p4992829) - you can just skip to the part where I talk about transferring my solo 401(k) from Vanguard to another vendor. (and you don't have to read the whole thread, just my first post) Vanguard reps gave me terribly wrong information related to the solo 401(k) transfer in my case, but I knew enough thanks to this forum to not go along with what Vanguard said. I want you to go into your own transfer armed with the right information so you don't make a costly mistake. In short, this isn't going to be an easy/quick process in my experience to successfully move your solo 401(k) from Vanguard to another vendor.

Best, ICM
HomeStretch
Posts: 5134
Joined: Thu Dec 27, 2018 3:06 pm

Re: Solo 401k and rollover IRA

Post by HomeStretch »

You need to amend the Solo 401k to TD Ameritrade and then do a direct trustee-to-trustee transfer of plan assets from Vanguard to TD Ameritrade. Then you can rollover the IRA into the Solo 401k.
Spirit Rider
Posts: 13619
Joined: Fri Mar 02, 2007 2:39 pm

Re: Solo 401k and rollover IRA

Post by Spirit Rider »

Ditto
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