solo ROTH 401k to be rolled into ROTH IRA
if a business owner has a solo ROTH 401k and makes both the employee contribution plus the catch up AND the employer contribution of $57K plus the catch up, are there any restrictions on rolling the entire balance into a ROTH IRA? Can the employer contribution be rolled as well as the employee contribution? Can this be done every year? Thank you for your input
Permalink Submitted by William Tuttle on Wed, 2021-08-11 21:13
IRS regulations prohibit the in-service distribution of employee deferrals and catch-up contributions prior to age 59 1/2.
IRS regulations allow, but do not require the in-service distributions of employer contributions prior to age 59 1/2.
Most 401k plan documents restrict the in-service distribution of employer contributions based on age, time since contribution, time of service and/or etc…
One-participant 401k plans using Ascenus plan documents (E-Trade, Schwab, TD Ameritrade, Vanguard, etc…), restrict until two (2) years after contribution until five (5) years of service or age 59 1/2.
Fidelity does not allow any in-service distributions until age 59 1/2.
You can find this information in their plan document or that of another provider.