solo or self employed roth 401k brokers

[summer2007]

I want to set up a solo roth 401k and I was going to do it with fidelity until I found out they only offer a solo401k not a roth one.

So I was wondering if anyone else on here set one up or knew of a good broker to set one up with?

Thanks

Jim

 

[JohnEyles]

I asked the same thing and no one knew.

However, someone DID suggest simply doing a "solo 401k",
using that to tax shelter some income, and then doing a
Roth IRA conversion for an equivalent number of dollars.
So the sheltered income and the conversion income balance
each other out.

I'm not sure how this works if you're actually needing to
convert the SAME money that you sheltered. For me it
should work fine, because I can simply convert money in
an existing Traditional-IRA. But if you have no TIRA, then
you'd have to convert the 401K money to IRA and then to
Roth. Could be very awkward, maybe impossible.

 

[wildcat]

It was my perception (and it is a bit cloudy since I haven't read anything about the Roth 401k in a while) that the Roth 401ks were meant for the employee crowd -- in other words, something the mega corps were offering -- and not the self-employed crowd. Do you have information stating otherwise and could you link it? I am creeping towards my goal of self-employment and I have been reading through the available plans myself.

 

[Bigritchie]

One thing to consider also being self-employed, if your income really skyrockets, do you really wanna have your cash stuck in something until 59, when you wanna retire at 39?

 

[wildcat]

One thing to consider also being self-employed, if your income really skyrockets, do you really wanna have your cash stuck in something until 59, when you wanna retire at 39?

A valid point but if your income skyrockets, would you rather pay a crap load of taxes?

 

[Martha]

T. Rowe Price and Pioneer offer Roth options for their solo401k plans. There may be more. Go to 401khelpcenter.com - 401(k) Plan Sponsors, Small Business, Employee Retirement Plans which lists solo 401k providers. Only the "employee" part of your contribution can go into the Roth portion, IIRC.

 

[Bigritchie]

A valid point but if your income skyrockets, would you rather pay a crap load of taxes?

Well depending on the business you may or may not with certain right offs. But if you can make 300k every year for 8-9 years and retire, who cares about the extra taxes you would pay, if the cost of paying less taxes is retirement 30 years earlier?

I do have 1 IRA myself, and as I found out a few days ago, were I not disabled I would have made calling it quits at 30 much harder.

 

[wildcat]

T. Rowe Price and Pioneer offer Roth options for their solo401k plans. There may be more. Go to 401khelpcenter.com - 401(k) Plan Sponsors, Small Business, Employee Retirement Plans which lists solo 401k providers. Only the "employee" part of your contribution can go into the Roth portion, IIRC.

Thanks Martha .