Solo 401k
Outside the box thought that not sure if it has validity or not. I know that in order to fund a Solo 401k you need 1099 income. However, I haven’t been able to determine if there are any requirements to merely open an Solo 401k, which then would allow for pre-tax IRA’s to be rolled into it. Then the door would be open for ND IRA contributions and Roth conversions.
Any thoughts or sources would be greatly appreciated.
Thanks in advance,
Nick
Permalink Submitted by Alan - IRA critic on Sat, 2020-03-07 04:04
Per Sec 401(c), a self employed individual’s business must either have a net profit for the current year or the business must have had a profit for a prior year. Without meeting one of these requirements, a solo K should not be opened, particularly if the sole purpose is to house an IRA rollover.