Roth Solo 401k Distributions
Before processing Roth Solo 401k distributions, make sure it falls under the qualified distribution rules in order to avoid penalties and taxes.
Qualified Distributions
A qualified distribution is a distribution that is made after the Solo 401k participant's nonexclusion period and:
A Solo 401k participant's nonexclusion period for a Solo 401k plan is the 5-tax-year period beginning with the earlier of the following tax years.
Visit Roth Solo 401k Rollover to learn more.
Qualified Distributions
A qualified distribution is a distribution that is made after the Solo 401k participant's nonexclusion period and:
- On or after the Solo 401k participant attains age
59½, - On account of the Solo 401k participant being disabled, or
- On or after the Solo 401k participant's death.
A Solo 401k participant's nonexclusion period for a Solo 401k plan is the 5-tax-year period beginning with the earlier of the following tax years.
- The first tax year in which the Solo 401k participant made a designated Roth Solo 401k contribution to the plan, or
- If a rollover contribution was made to the participant's designated Roth Solo 401k account from a designated Roth account previously established for the participant under another plan, then the first tax year the participant made a designated Roth contribution to the previously established account.
Visit Roth Solo 401k Rollover to learn more.