QUESTION: When I transfer stock from non roth to both SOLO 401k how do you determine dollar value of transfer for tax purposes? that is, what day/price do you use when you complete my tax form for irs?
ANSWER: I don' t quite understand your question but I'm going to attempt to answer it. Please let me know if you need further clarification.
When converting publicly traded common stocks (e.g., Apple stock, Home Depot stock, Alibaba stock, El Pollo Loco stock and Twitter stock, etc.) held in the pretax solo 401k sub account to the roth solo 401k sub account, the closing value of the stocks on the day the securities get moved over in-kind into the roth solo 401k sub account is the amount that is reported as an in-plan roth solo 401k conversion to the IRS on Form 1099r.
ROTH SOLO 401K CONVERSION EXPLAINED
LATEST ROTH SOLO 401K CONVERSION RULES
Mark Nolan has been active in the 401k and IRA industry for over 18 years. Working as a 401k administrator at Nationwide Insurance Company; then working as a Compliance Officer and Manager at self-directed IRA/401k custodian companies such as Trust Administration Services Corporation (now owned by Equity Trust Company), to IRA Services Trust company. Mark is currently the Compliance Manager at MySolo401k.Net.