Solo 401(k) plan question

Aug 27, 2008 3 Replies
S

I should probably ask these on the retirement plan forum but here goes:



(1) Can a traditional 401(k) still with an ex-employer be rolled over into an existing Solo 401(k) (assuming the latter plan permits rollovers)?



(2) What about an IRA, all of whose funds had one time originated in a former employer's 401(k)? Can it roll into the solo 401(k)?



(3) Can a solo 401(k) be restated as a 401(a) qualified plan? Are there implications to this other than paperwork and future contribution levels/formulas? (One I can think of is you could then have employees.)



Thanks,



Steve


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R

Yes.

Yes. (Though the solo 401(k) custodian can be very picky about it, because if you screw up, you can blow the qualifiedness of your plan).

-- Rich Carreiro snipped-for-privacy@rlcarr.com

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S

In article ,

Yes, I have thought about this. In the case at hand the TP has two IRA's, both of which can be shown to have originated in the mid-1990's as lump sums from an employer. What is less clear is if there is any prior documentation demonstrating those lump sums were from 401(k)'s, although practically speaking there is not much else they could have been. So, the question is how much documentation is really enough.

Steve

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A

A good clue is if the title of the IRA includes the phrase Rollover or Conduit (for older rollovers).

But even that cannot guarantee that you did not co-mingle non-401k funds into that IRA later. Which is why some employer plans will not accept IRAs rolled back to them.

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