Should I open a solo401k and move employer 401k into it?

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hiddenpower
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Should I open a solo401k and move employer 401k into it?

Post by hiddenpower »

Based on what I've read I can open a solo 401k, and move over my employer's 401k after leaving the company. It looks like I'll have to file an extra form each year but is that the only downside? I'm leaving a company where right now my pre-tax 401k is in a linked self-directed brokerage account. It allows me to trade most] assets with not too many restrictions. So I also don't mind just leaving is there but was wondering if there's a good reason to open a solo 401k and make the move to consolidate everything into the same broker and get rid of trading restrictions like T+2. Thanks!
sailaway
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Re: Should I open a solo401k and move employer 401k into it?

Post by sailaway »

Will you have a business or self employment when you leave your current employer?
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hiddenpower
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Re: Should I open a solo401k and move employer 401k into it?

Post by hiddenpower »

sailaway wrote: Tue Jan 24, 2023 4:44 pm Will you have a business or self employment when you leave your current employer?
Not anytime soon but would love to one day! I don't think that's a requirement to open an individual 401k but I'm going to ask.
Joe Public
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Re: Should I open a solo401k and move employer 401k into it?

Post by Joe Public »

Have you considered moving the employer 401(k) assets into a rollover IRA? If so, what is driving your preference toward a solo 401(k) over the rollover IRA?
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hiddenpower
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Re: Should I open a solo401k and move employer 401k into it?

Post by hiddenpower »

Joe Public wrote: Tue Jan 24, 2023 5:00 pm Have you considered moving the employer 401(k) assets into a rollover IRA? If so, what is driving your preference toward a solo 401(k) over the rollover IRA?
that prevents backdoor roth conversions
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hiddenpower
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Re: Should I open a solo401k and move employer 401k into it?

Post by hiddenpower »

Can anyone answer the question LOL?

According to etrade you're supposed to freeze the solo401k when your business is not operating. So I guess having a business is a requirement to open one? To be clear, I do not intend to "contribute" to this account (not anytime soon at least!)
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Re: Should I open a solo401k and move employer 401k into it?

Post by sailaway »

hiddenpower wrote: Tue Jan 24, 2023 5:18 pm Can anyone answer the question LOL?

According to etrade you're supposed to freeze the solo401k when your business is not operating. So I guess having a business is a requirement to open one? To be clear, I do not intend to "contribute" to this account (not anytime soon at least!)
Yes, you have to be doing business to open a solo 401k. That's why I started with that question.
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hiddenpower
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Re: Should I open a solo401k and move employer 401k into it?

Post by hiddenpower »

sailaway wrote: Tue Jan 24, 2023 5:22 pm
hiddenpower wrote: Tue Jan 24, 2023 5:18 pm Can anyone answer the question LOL?

According to etrade you're supposed to freeze the solo401k when your business is not operating. So I guess having a business is a requirement to open one? To be clear, I do not intend to "contribute" to this account (not anytime soon at least!)
Yes, you have to be doing business to open a solo 401k. That's why I started with that question.
What evidence do you need to open one? You also need a business to open a business credit card and well.
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retiredjg
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Re: Should I open a solo401k and move employer 401k into it?

Post by retiredjg »

hiddenpower wrote: Tue Jan 24, 2023 5:18 pm Can anyone answer the question LOL?

According to etrade you're supposed to freeze the solo401k when your business is not operating. So I guess having a business is a requirement to open one? To be clear, I do not intend to "contribute" to this account (not anytime soon at least!)
A solo 401k, like any other 401k, must be sponsored by some kind of self employment income. You can't just open one because you want one.
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Re: Should I open a solo401k and move employer 401k into it?

Post by sailaway »

hiddenpower wrote: Tue Jan 24, 2023 5:32 pm
sailaway wrote: Tue Jan 24, 2023 5:22 pm
hiddenpower wrote: Tue Jan 24, 2023 5:18 pm Can anyone answer the question LOL?

According to etrade you're supposed to freeze the solo401k when your business is not operating. So I guess having a business is a requirement to open one? To be clear, I do not intend to "contribute" to this account (not anytime soon at least!)
Yes, you have to be doing business to open a solo 401k. That's why I started with that question.
What evidence do you need to open one? You also need a business to open a business credit card and well.
Oh, well, if you want to commit fraud, you are going to have to find your information elsewhere.
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Re: Should I open a solo401k and move employer 401k into it?

Post by LadyGeek »

Discussions of dishonest behavior or bypassing the law is totally unacceptable. The question has been answered. This thread has run its course and is locked.
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