Solo 401(k)
Does the 60 day rollover rule apply to a Solo 401(k) if an individual wants to take the cash for a short period of time, and then reinvest it within that time period? I know all of the stipulations as it relates to IRA’s, but am wondering if those same rules apply to Solo (k’s).
Permalink Submitted by Alan - IRA critic on Mon, 2025-03-24 11:27
No, the rules are different. A solo 401k may or may not allow loans which can be repaid with interest. If the plan provider does not allow loans, a distribution of a portion of the plan balance may be allowed, although any elective deferrals cannot be distributed until the business has been closed or participant reaches 59.5.
If such a distribution is allowed, it cannot be rolled back but could be rolled over to an IRA within 60 days. If the plan allows rollovers from IRAs, it would then be possible to roll the IRA balance (or part it) back to the 401k.