QUESTION: We are in the process of setting up a living trust. As we understand, the living trust shall pull in all the assets under it including the Self-Directed 401k. The 401 k accounts that we opened are not exactly in our names. They are titled under the names of our self-employed businesses. How can we make sure that they are brought in? Do we need to change the name of the solo 401k trust or anything else on this?
ANSWER: The IRS and 401k regulations do not allow for the deposit/transfer of 401k trusts, which fall under the retirement trust umbrella, to a living trust. However, a living trust, while it may not always be beneficial, may be named as the 401k primary or contingent beneficiary of a solo 401k.
Thank you,
Tarakan in Massachusetts
More Information
Solo 401k beneficiary distribution rules
Ed Slott's take on naming a living trust as a beneficiary of a solo 401k or IRA
What is a solo 401k trust?
ANSWER: The IRS and 401k regulations do not allow for the deposit/transfer of 401k trusts, which fall under the retirement trust umbrella, to a living trust. However, a living trust, while it may not always be beneficial, may be named as the 401k primary or contingent beneficiary of a solo 401k.
Thank you,
Tarakan in Massachusetts
More Information
Solo 401k beneficiary distribution rules
Ed Slott's take on naming a living trust as a beneficiary of a solo 401k or IRA
What is a solo 401k trust?
RSS Feed