• Skip to primary navigation
  • Skip to main content
  • Skip to footer
Solo 401k

Solo 401k

by Nabers Group

  • Learn
    • Setup >
      • Solo 401k Setup Process
      • Pricing
      • Services
      • Features
      • Deadlines
      • Compliance Calendar
      • Who is the Trustee and Custodian?
      • Do I Need a Third Party Administrator?
      • Multi-Member LLC and the Solo 401k
      • Is a Solo 401k Protected Against Bankruptcy?
      • Checkbook IRA >
        • What is the IRA LLC?
        • IRA LLC Setup Process
    • Funding >
      • Funding Your Solo 401k
      • What’s the Difference Between a Transfer and a Rollover?
      • Rollover Real Estate from the Self-Directed IRA to the Solo 401k
      • How to Document an Indirect Rollover
      • Rollover Real Estate from the IRA LLC to the Solo 401k
    • Contributions >
      • Solo 401k Contributions
      • Contribution Calculator
      • Sole Proprietorship Contributions
      • LLC and Partnership Contributions
      • Voluntary After-Tax Contributions
      • Corporation Contributions
      • Mega Backdoor Roth
      • Contribution FAQs
    • Qualification >
      • How to Qualify
      • Multi-owner LLC Business and the Solo 401k
    • Reporting >
      • Solo 401k Reporting Requirements
      • IRS Form 1099-R
      • How to File Form 5500-EZ
      • Where to File the 5500-EZ and Other FAQs
    • Roth Solo 401k
    • Prohibited Transactions
    • Calculators and Tools >
      • Contribution Calculator
      • Roth Conversion Calculator
      • Solo 401k Retirement Calculator
      • Home Budget Calculator
      • Roth vs Traditional Contribution Calculator
    • Blog
    • Solo 401k FAQ
  • Invest
    • Cryptocurrency >
      • Cryptocurrency Basics
      • Crypto In Your Solo 401k
      • Grow Crypto Gains Tax Free with Roth 401k
      • FAQ – Bitcoin In the Solo 401k
    • Real Estate >
      • Real Estate and the Solo 401k
      • Real Estate Example
      • Financing
      • Non-Recourse Loans
      • Non-Recourse Lending Resources
    • Promissory and Mortgage Notes
    • Tax Liens & Deeds
    • Gold & Silver
    • Brokerage Accounts
    • Private Placements
  • Borrow
  • Pricing
  • Reviews
    • Reviews
    • About Us
    • Refer a Friend
  • Network
  • Support
    • Knowledge Base
    • Community
    • December Daily Q&A
  • Login
Sign Up

Basic Solo 401k Rollover From Corporate Retirement Accounts

You are here: Home / Blog / Basic Solo 401k Rollover From Corporate Retirement Accounts

March 4, 2020 by Editorial Team Leave a Comment

You have lots of options with 401k rollovers. Today’s employment world is complicated to say the least. This is not your father’s employment world. In days gone by, a person would take a low paying job while in high school or shortly after graduating to gain work experience. Some people went on to college, but many did not.

Regardless of education level, most people soon found a job with a major employer where they remained for many years (or decades). People stayed with one employer to earn a pension and some started their own second retirement account as a separate IRA. In the best circumstance, an employee earned both a pension and contributed to an employer matched 401k.

Today’s Millennial Retirement Reality

Those opportunities no longer exist for most of the younger Millennial generation. Today, there are several very different realities applying to Millennials saving for retirement. Fist, employee retirement is almost completely limited to 401k employer matching accounts. Gone are the days pensions rewarding you for loyalty to your company.

Importantly, once you stop earning a salary from that employer, the employer’s matching contribution also stops. That’s what makes the second job-hopping trend in Millennial employment so important when managing retirement accounts. Millennials tend to change jobs much more often. In fact, as far back as 2014, a CareerBuilder survey found that by age 35, a full 25% of employees had already transitioned through 5 or more different jobs.

Millennials job hop for many good reasons including matching lifestyle to employment, relocation opportunities, as well as career growth. However, these people are leaving unattended retirement accounts scattered among multiple employers. Some call these abandoned or orphaned 401k accounts.

However, it’s more likely they are simply unattended. Accounts that that mostly have the money invested in what made sense 2, 5, 7, or 10 years ago. Multiple accounts that each pay individual administrative fees when there is little or no administrative activity occurring. Dormant accounts that often have accumulated cash sitting in low interest paying money markets that came from dividends, mergers, or policy changes. The bottom line is these dormant retirement accounts are NOT being actively managed.

Retirement Simplicity

There is a simple process to consolidate multiple retirement accounts into a single much easier to manage Solo 401k rollover account. The Solo 401k account converts complexity into simplicity.

Beyond reducing administrative costs for multiple accounts, it gives you a much clearer view of your overall portfolio when it’s in a single account. Of course, your investing opportunities are much broader when you are in total control of your account. For instance, if you decide to purchase a rental house, you may need a relatively large amount of money. First of all, employer back 401ks don’t allow you to make truly diversified investments like rental houses. However, with a Solo 401k rollover account, not only are rental houses common, but the purchase is greatly simplified when all of your funds are in a single account.

And the simplicity continues well into your retirement years. Whether you are ready or not, at age 72 you must begin taking retirement distributions. This requires a lot of management on your part. That’s especially true if you have 15 or 20 accounts at the same number of previous employers. Plus, paying another new round of administrative fees to distribute each one of those accounts.

In today’s employment world, you’re essentially a self-employed individual working for a series of different clients. You’re definitely managing your career. Doesn’t it make sense to also treat your retirement account as if you are in charge?

Solo 401k Rollover

Here are most of the various types of retirement accounts available to be moved into and self managed as a Solo 401K rollover (or a Checkbook IRA):

  • Employer 401k
  • Traditional IRA
  • Keogh
  • SEP IRA
  • SIMPLE IRA
  • 403(b)
  • 457 plan
  • Profit Sharing Plans
  • Qualified Annuities

Solo 401k Rollover Advantages and Benefits

The differences between a Solo 401k and an employer controlled 401k are profound. The Solo 401k retirement account isn’t available to everyone (the Checkbook IRA is available to everyone) but for those who qualify, it means gaining the ability to grow retirement wealth to levels that no other accounts offer.

You should consider a 401k rollover or Checkbook IRA if you want:

  • Immediate access to your own assets with full decision-making authority.
  • Clearly understand that you must diligently mange these funds to prevent them from being treated as distributions.
  • You want to stop paying transaction and asset based fees to a financial advisor who severely limits your investment options.
  • Have all profits from your investments build your retirement account tax-free.
  • More diversification in your retirement account
  • To invest in much more profitable options than Wall Street offerings
  • Please contact us to discuss even more advantages and benefits you’ll realize with a Solo 401k or Checkbook IRA.

Recap

The Solo 401k is the most tax-advantageous plan available as well as having high annual contribution limits. The Solo 401k also enables you to borrow money from your retirement funds to help finance your business – something prohibited with IRA plans.

There are some legal limitations that prevent everyone from being eligible. The Solo 401k is limited to people who already own a business or who will be establishing a business that will not have full-time employees. This plan is perfect for independent contractors, home businesses, and real estate agents. The business owner’s spouse may also contribute to the plan.

Have questions about the Solo 401k? The experts at Nabers Group will help you get your retirement funds into your control, where they belong.

Category iconBlog,  Compliance,  Entrepreneurship,  SDIRA,  Solo 401k,  Solo 401k Investing,  Solo 401k Qualification,  Solo 401k Setup,  Uncategorized Tag iconblog,  Compliance,  Entrepreneurship,  Solo 401k,  Solo 401k Setup

5 Ways To Buy Bitcoin

Learn about 5 ways to buy Bitcoin and the pros and cons of each.

(Including how to put BTC in your IRA or 401k)

Learn More

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Ready to take control of your financial future?

Start where you are. Use what you have. Invest in what you want.

Get Started

Footer

Solo 401k by Nabers Group

Solo 401K experts at Nabers Group will help you get your retirement funds into your control, where they belong.

600 17th Street
Suite 2800
Denver, CO 80202

Phone: 877-SOLO-401 [877-765-6401]
Fax: 775-201-1456
Email: [email protected]

Business Hours:
Monday-Saturday 8 am-6 pm MT
Sunday by appointment

Nabers Group BBB Business Review

Sitemap

  • Home
  • Pricing
  • About Us
  • Reviews
  • Blog
  • Solo 401k Client Login
  • Contact Us

About the Solo 401k

  • Qualification
  • Pricing
  • Setup Process
  • Investment Options
  • Roth Solo 401k
  • Reporting Requirements
  • Prohibited Transactions
  • Participant Loan
  • Crypto In Your Solo 401k
  • Real Estate in Your Solo 401k
  • FAQ

Stay Connected

Get the latest self-directed investor news, market updates and trainings straight to your inbox.

Copyright © 2021 Nabers Group LLC | Terms | Privacy

Digital asset services are provided by Nabers Digital LLC