December 13, 2022 | By George Blower
Solo 401k Question Answered – Can I transfer stocks from my brokerage account to my Solo 401K?
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Solo 401k FAQ: Can I transfer assets like stocks into my solo 401(k)? What is the cost of this process?
First, there is no cost to rollover cash and/or assets to the Solo 401k.
The key issue is whether the assets (i.e. stocks) that a solo 401k owner wishes to transfer into the solo 401k are held in a retirement account that are eligible to be rolled into the plan.
If stocks or other assets are not in a retirement account (e.g. stock held in a personal brokerage account), the solo 401k owner cannot transfer non-cash assets to the solo 401(k). When a solo 401k owner deposits non-retirement assets into a solo 401(k) owner, this must be made as a contribution and all Solo 401k contributions must be made as cash contributions and subject to the contribution rules (e.g. deadlines, limits, etc.).
If the stocks or other assets are in a retirement account, the stock may be rolled over to the solo 401k if the stock is a retirement account that is eligible to be rolled over (i.e. former employer plan and/or non-Roth IRA). If the stock is in a Roth IRA, it can’t be rolled over to a solo 401k it can’t be transferred to a Solo 401k because cash and assets in a Roth IRA can’t be transferred to any type of 401k including a Solo 401k.
