moving funds from a roth ira to a solo roth 401k
Hello all! I have a Roth IRA with a custodian & a Roth 401k that is in a bank acct with myself as trustee. I am self-employed , 65 yrs of age & have had both acts open over 5 yrs. Can I move the self-directed Roth IRA funds(with a custodian) over to my Roth 401k acct tax free? I can’t find anything online that addresses this transfer.
Much appreciated,
Karyn
Permalink Submitted by Alan - IRA critic on Fri, 2020-01-24 14:55
Permalink Submitted by David Mertz on Fri, 2020-01-24 17:07
Even if you were permitted to move Roth IRA funds to a Roth 401(k), what would be the point of doing so, except, perhaps, to be able to take a 401(k) loan based on the balance if the plan permits? The Roth 401(k) will be subject to RMDs when you reach age 72 and, if the Roth 401(k) was not yet qualified (although in this case it is), to proration of taxable and nontaxable amounts in distributions. It might be beneficial to instead roll the Roth 401(k) to the Roth IRA to avoid eventual RMDs.