Rollovers and Distributions FAQs

Rollovers and Distributions

A Security Benefit Solo 401(k) offers sole proprietors the opportunity to save for retirement using many of the advantages of a traditional 401(k), including: 

  • tax-deductible contributions 
  • annual contributions that exceed 25% of compensation
  • Roth contribution availability
  • catch-up contributions for people 50 and over
  • loans or hardship withdrawals
  • rollovers from other retirement plans

Most importantly, Security Benefit's straightforward administrative requirements make these plans easy to establish and maintain for you and your clients.

Below are some frequently asked questions and you can find more on Solo 401(k) FAQs Overview, Establishing a Solo 401(k), and Contributing to a Solo 401(k). Visit our Solo 401(k) page to learn about the Security Benefit Solo 401(k).

What plans can rollover into a Solo 401(k) plan?
SEP IRA Yes
SIMPLE IRA Yes, after 2 years
Traditional IRA Yes
Roth IRA No
Existing 401(k) Yes
Roth 401(k) Yes
403(b) or 457(b) Yes

 

Do Required Minimum Distributions (RMDs) need to be taken from the Solo 401(k) plan while still employed?

Yes.

Can a Roth Solo 401(k) plan be rolled over to a Roth IRA?

Yes.

Can a pretax Solo 401(k) plan be rolled over directly to a Roth IRA?

Yes.

Can a Solo 401(k) plan allow in-plan Roth conversions from my pretax funds?

Yes, if the plan document allows for it and the recordkeeper can accommodate. Currently, this feature is not available at Security Benefit. 

Can an existing Solo 401(k) plan be transferred to a new provider/recordkeeper?

Yes, a Solo 401(k) plan can be transferred just like a regular 401(k) plan.


FINANCIAL PROFESSIONAL USE ONLY — NOT FOR USE WITH CONSUMERS

Security Benefit, its affiliates and subsidiaries, and their respective employees and representatives, do not provide tax, accounting, or legal advice. Any statements contained herein concerning taxes were not intended as and should not be construed as tax advice, nor should they be used for the purpose of avoiding federal, state, or local taxes and/or tax penalties. Please seek independent tax, accounting, or legal advice. 

Services are offered through Security Distributors, a subsidiary of Security Benefit Corporation (Security Benefit).

SB-10036-84 | 2023-08-23