USA Can I fund my solo 401(k) with shares I already own?


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Can I fund my solo 401(k) with mutual fund shares I already own instead of cash?

I would only transfer in the amount I am allowed to contribute, i.e., the value of the shares I put in would have the same value as the amount of cash I could put in.

Thank you!!
 

bklynboy

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You can only do it as an IRA. 401K is am employer sponsored plan and works through payroll deductions into elected funds available in that plan.
 
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bklynboy

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I believe it works the same meaning you need to put cash in and then invest - you just get a wider option of where to invest. I am no longer in that field but don't recall ever permitting assets other than cash from going in as contributions. The purpose is to mimic a traditional 401K. Now if the mutual funds are in another IRA type vehicle they can be transferred in but I don't think personal investments can.
 
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Yes that seems to be the response I am getting in different quarters. Though I cannot find the chapter and verse that says contributions must be in cash. Nobody can cite me to the statute, reg or rule which says that. Thank you for your response.
 

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