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xtexan
Level 2

Can i roll over funds from my Roth IRA to my Roth Solo 401k?

It would be helpful to have a citation to IRA guidance or regulations if possible.
1 Best answer

Accepted Solutions
ChristinaS
New Member

Can i roll over funds from my Roth IRA to my Roth Solo 401k?

No, you cannot.

You will find this response from numerous sources with the search "roll Roth IRA to Roth solo 401k"

The IRS says so here:

" Roth IRAs can only be rolled over to another Roth IRA."

https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras-rollovers-and-roth-convers...

You can also gather this interpretation from the law, and its description of qualified Roth rollovers:

https://www.law.cornell.edu/uscode/text/26/408A

see § 408A (e)(1). Rollover from IRA to non-IRA not a qualified rollover.                  


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3 Replies
ChristinaS
New Member

Can i roll over funds from my Roth IRA to my Roth Solo 401k?

No, you cannot.

You will find this response from numerous sources with the search "roll Roth IRA to Roth solo 401k"

The IRS says so here:

" Roth IRAs can only be rolled over to another Roth IRA."

https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras-rollovers-and-roth-convers...

You can also gather this interpretation from the law, and its description of qualified Roth rollovers:

https://www.law.cornell.edu/uscode/text/26/408A

see § 408A (e)(1). Rollover from IRA to non-IRA not a qualified rollover.                  


dmertz
Level 15

Can i roll over funds from my Roth IRA to my Roth Solo 401k?

In fact, even if you could roll money from a Roth IRA to a Roth 401(k), it would be inadvisable to do so.  Money in a Solo Roth 401(k) is generally not distributable until you reach age 59½.  Even if you can take a distribution from the Solo Roth 401(k), distributions from a Roth 401(k) do not follow Roth IRA ordering rules.  Unless the distribution from the Roth 401(k) is a qualified distribution (based on the establishment date of the Solo Roth 401(k)), the distribution is proportionately basis and taxable earnings.  Finally, when you reach age 70½, RMDs are required from a Roth 401(k) but not from a Roth IRA.
xtexan
Level 2

Can i roll over funds from my Roth IRA to my Roth Solo 401k?

Great info, thanks very much!
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