Solo 401(k) Questions

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Topic Author
erdo
Posts: 51
Joined: Sat Feb 14, 2015 8:31 pm

Solo 401(k) Questions

Post by erdo »

Hello all,

I have several questions regarding whether what I'm considering makes sense.

Several years ago, I opened a Solo 401(k) through Vanguard (I know, not the best custodian) when I had 1099 income. I haven't had 1099 income in at least three years, but still have the Solo 401(k).

I have just recently left my W2 job for another W2 job, and was considering rolling my old 403(b) into my Solo 401(k). I know that Vanguard doesn't allow rollovers, so I was thinking to change my Solo 401(k) custodian to E*Trade. After doing so, I was planning to rollover my old 403(b) into the E*Trade Solo 401(k).

I just wasn't sure if:

a) I could change my custodian when I haven't had 1099 income in several years
b) I could roll the money from the 403(b) into the Solo 401(k) when I haven't had 1099 income in several years

Thanks!
SuzBanyan
Posts: 486
Joined: Thu Jun 02, 2016 11:20 am

Re: Solo 401(k) Questions

Post by SuzBanyan »

Good news ! No need to change custodians as Vanguard now allows incoming rollovers. See discussion here: viewtopic.php?t=339757

My understanding is that rollovers are allowed into a Solo 401k that was properly set up and maintained even without current business income. The employer must still be in existence, so this won’t work if the plan sponsor was a now terminated LLC for example (and that may result in its own problems). Note that if the solo 401k balance reaches $250,000 due to a rollover or otherwise, an annual filing of Form 5500-EZ.
Topic Author
erdo
Posts: 51
Joined: Sat Feb 14, 2015 8:31 pm

Re: Solo 401(k) Questions

Post by erdo »

Thank you, I didn’t realize that! I contributed as a sole proprietor but will double check with Vanguard about eligibility to rollover.
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