QUESTION 1. Can I freely rollover any Sep-IRA or IRA accounts in cash form to my Solo 401K. I can ask Ameriprise to transfer or if they are are difficult, take a distribution as cash and deposit to Solo 401k within 60 days.
ANSWER: While you can transfer both SEP-IRA and traditional IRA accounts to a Solo 401k, you would want to do so a direct rollover as you can only do one 60-day rollover from one IRA account per 12 month period and there is no grace period if you miss the deadline. Please note that we would shepherd you through the direct rollover process as part of our services.
QUESTION 2. Your firm allows me to not only establish the Solo 401k, but at the same time establish a component alongside for a Roth Solo.
ANSWER: Yes our Solo 401k plan allows for both a traditional and Roth Designated Solo 401k sub-account. Please note that there is no additional charge for this feature.
QUESTION 3. The Roth Solo can only be funded through new contributions that are post-tax income and are subject to certain limits.
ANSWER: The Roth SOLO 401k Designated account can be funded from the following sources: (i) Employee contributions up to $18,000 in 2015 (or $24,000 if you are 50 are older) provided that you have enough self-employment income; (ii) Transferring funds from the traditional sub-account to the Roth solo 401k designated sub-account via an in-plan conversion (note: that this would incur a tax liability to convert the funds from pre-tax to post-tax status and we would handle the required tax reporting; you may read more here: http://www.mysolo401k.net/plan-roth-rollovers-aka-converting-solo-401k-solo-401k-roth-self-directed-401k-solo-401k-individual-401k-solo-k/ ); and (iii) After-tax contributions via a strategy dubbed the "mega backdoor" Roth - you may read more about this strategy at the following link: http://www.mysolo401k.net/mega-back-door-roth-using-solo-401k-plan/
QUESTION 4. I cannot transfer funds from my established Roth IRA accounts to the Solo Roth, however, I can rollover a portion of my Solo 401k into Roth by paying the tax - a "In-Plan" conversion.
ANSWER: Correct.
QUESTION 5. I assume your firm facilitates the up to 50% or $50k borrow from Solo at prime plus a point.
ANSWER: Yes we handle preparation of the required documentation for a Solo 401k loan for no additional charge.
ADDITIONAL INFORMATION
Solo 401k FAQs
ANSWER: While you can transfer both SEP-IRA and traditional IRA accounts to a Solo 401k, you would want to do so a direct rollover as you can only do one 60-day rollover from one IRA account per 12 month period and there is no grace period if you miss the deadline. Please note that we would shepherd you through the direct rollover process as part of our services.
QUESTION 2. Your firm allows me to not only establish the Solo 401k, but at the same time establish a component alongside for a Roth Solo.
ANSWER: Yes our Solo 401k plan allows for both a traditional and Roth Designated Solo 401k sub-account. Please note that there is no additional charge for this feature.
QUESTION 3. The Roth Solo can only be funded through new contributions that are post-tax income and are subject to certain limits.
ANSWER: The Roth SOLO 401k Designated account can be funded from the following sources: (i) Employee contributions up to $18,000 in 2015 (or $24,000 if you are 50 are older) provided that you have enough self-employment income; (ii) Transferring funds from the traditional sub-account to the Roth solo 401k designated sub-account via an in-plan conversion (note: that this would incur a tax liability to convert the funds from pre-tax to post-tax status and we would handle the required tax reporting; you may read more here: http://www.mysolo401k.net/plan-roth-rollovers-aka-converting-solo-401k-solo-401k-roth-self-directed-401k-solo-401k-individual-401k-solo-k/ ); and (iii) After-tax contributions via a strategy dubbed the "mega backdoor" Roth - you may read more about this strategy at the following link: http://www.mysolo401k.net/mega-back-door-roth-using-solo-401k-plan/
QUESTION 4. I cannot transfer funds from my established Roth IRA accounts to the Solo Roth, however, I can rollover a portion of my Solo 401k into Roth by paying the tax - a "In-Plan" conversion.
ANSWER: Correct.
QUESTION 5. I assume your firm facilitates the up to 50% or $50k borrow from Solo at prime plus a point.
ANSWER: Yes we handle preparation of the required documentation for a Solo 401k loan for no additional charge.
ADDITIONAL INFORMATION
Solo 401k FAQs
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