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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!

Will you have a business or self employment when you leave your current employer?

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.

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?

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

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!)

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.

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.

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.

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.