Solo 401(k) plan question


S

Steve Pope

I should probably ask these on the retirement plan forum
but here goes:

(1) Can a traditional 401(k) still with an ex-employer be
rolled over into an existing Solo 401(k) (assuming the latter
plan permits rollovers)?

(2) What about an IRA, all of whose funds had one time originated
in a former employer's 401(k)? Can it roll into the solo 401(k)?

(3) Can a solo 401(k) be restated as a 401(a) qualified plan?
Are there implications to this other than paperwork and
future contribution levels/formulas? (One I can think of
is you could then have employees.)

Thanks,

Steve
 
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R

Rich Carreiro

I should probably ask these on the retirement plan forum
but here goes:

(1) Can a traditional 401(k) still with an ex-employer be
rolled over into an existing Solo 401(k) (assuming the latter
plan permits rollovers)?
Yes.

(2) What about an IRA, all of whose funds had one time originated
in a former employer's 401(k)? Can it roll into the solo 401(k)?
Yes. (Though the solo 401(k) custodian can be very picky about it,
because if you screw up, you can blow the qualifiedness of your plan).
 
S

Steve Pope

(e-mail address removed) (Steve Pope) writes:

Yes. (Though the solo 401(k) custodian can be very picky about it,
because if you screw up, you can blow the qualifiedness of your plan).
Yes, I have thought about this. In the case at hand the TP
has two IRA's, both of which can be shown to have originated
in the mid-1990's as lump sums from an employer. What is less clear
is if there is any prior documentation demonstrating those lump
sums were from 401(k)'s, although practically speaking there is
not much else they could have been. So, the question is
how much documentation is really enough.

Steve
 
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A

Arthur Kamlet

Yes, I have thought about this. In the case at hand the TP
has two IRA's, both of which can be shown to have originated
in the mid-1990's as lump sums from an employer. What is less clear
is if there is any prior documentation demonstrating those lump
sums were from 401(k)'s,

A good clue is if the title of the IRA includes the phrase Rollover
or Conduit (for older rollovers).


But even that cannot guarantee that you did not co-mingle non-401k
funds into that IRA later. Which is why some employer plans will
not accept IRAs rolled back to them.
 

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