IND-401k partial rollover to IRA
With an existing IND-401K that is currently being contributed to by the sole owner is it possible to rollover a partial amount to an IRA? Thank you!
Thank you for this timely question. I am the Plan Administer of my sole proprieter Solo 401K. 64 years old. This is an active plan. This year I made a direct partial rollover from the Solo 401K brockerage to a different brockerage (and subsequent Roth conversion). As the Solo401K holding brokerage does NOT manage IRS reporting (Form 5498), I am insecure in this regard. Even after discussions with each brokerage, and review of the many helpful resources available.I am the first to expose our accountant to the benefits and complexities of the Solo401K; this is a world in which I am hestitant to be a leader!Please advise, and Thank You
- However, they are responsible for filing Form 1099-R for any rollovers to an IRA.
- Every mainstream one-participant 401k plan documents I have seen. Allow unrestricted in-service rollovers of all plan assets >= age 59.5 and will file Form 1099-R on your behalf.
- However, when you say that the brokerage does NOT manage IRS reporting, is this a custom plan document and you are the full administrator/recordkeeper. You will need to review your plan document for in-service rollover rules to see if this rollover was allowed. Also, it will be your reponsibilty to file the Form 1099-R.
Permalink Submitted by Alan - IRA critic on Tue, 2019-05-14 18:59
It depends on the term of the plan. But any elective deferrals cannot be distributed until 59.5 at the earliest, after that age it depends on the plan provisions.
Permalink Submitted by steve harper on Tue, 2019-05-14 20:53
Alan!