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How To Do An In-Plan Roth Conversion
Updated over a year ago

Your Roth Solo 401k is already included as a sub-account of the Solo 401k we set up for you so this will be easy to do!

The “in-plan Roth conversion” was made allowable by a 2010 amendment that we have included in our plan documents to provide you the greatest flexibility while maintaining strict adherence to the IRS rules. Both plan participants (you and your spouse) can do a Roth conversion in the Solo 401k.

Converting existing Solo 401k funds to Roth means there will be some taxes due, just like any other Roth retirement plan.

You have access to our vetted and trained network of great CPAs to make calculating your taxes straightforward.

Here's how to complete your in-plan Roth Conversion in the Solo 401k:

  1. Decide how much of the funds you want to convert to Roth.

  2. Fill out the "In-Plan Roth Conversion Form" found in your Solo 401k plan documents zip file to document the conversion.

  3. Use our 1099-R generator and submit your form by January 25th for the previous year's conversions (if you miss the Jan. 25th deadline, you will need to work with your CPA to complete the filing

The Roth Solo 401k funds conversion is not subject to the 20% taxable withholding like a regular distribution, but form 1099-R must still be completed and filed to document the funds conversion.

Your Solo 401k documents come with in-plan Roth Conversion forms, so it’s easy to document your Roth conversion. Make sure to keep excellent records of what funds were converted to Roth.

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