Move Money from IRA to Solo 401K

O.K., so I know a bit a bout Solo 401k’s having used one when they first came out. In fact Clark started talking about them and a few of the financial places I talked with had no idea what they were. When I did this before I think there were taxes and can’t remember if I was 59 1/2 at the time or not.

Anyway, here is my situation. I have an IRA and have already taken my RMD for the year and used it for a project. I need to start a project in September,

I have an IRA at Fidelity and they offer a Solo 401K with no setup of fees. I want to transfer say $20,000 from my IRA into the Solo 401K there and then take a loan (as I remember for 1/2 the amount).

My big question is, does this movement of the money from an IRA to a 401K cause a tax issue and is there a limit of how much I can transfer from the IRA to the 401K.

I suspect your best bet would be consulting with Fidelity. Just from a cursory look, it seems that transferring funds from a traditional IRA is permitted, but not from a Roth IRA.

can anyone explain what a solo 401K is?
I have a retirement 401K, Roth IRA and Traditional IRA.
I am retired w/o W2 income, so i cannot contribute…will a solo help with that?

It is a traditional IRA.

I thought about asking Fidelity, however they do say that they don’t offer tax information. I guess whether this is a taxable event is not really ‘tax information’.

If the transaction is permitted, a transfer shouldn’t be taxable because it goes into the Solo 401k pre-tax. Whether you qualify is another question that I can’t answer. Generally you need to be self-employed to qualify (which I suspect you are). As far as I know, all the other rules are the same as any other 401k. However, I only have W-2 income, so haven’t looked into Solo 401k rules too much.

If you haven’t already, read this:

And here’s another good source of info on a Solo 401k:

This is the most, direct-to-the-point advice I’ve seen online. It looks to be a green light to this rank amateur.

No ma’am I don’t think the solo will not work for you. It works essentially the way a regular 401-k works, in that it is sponsored by your own (for example a DBA) company. For it to work though, you must “have income” meaning the company and you are drawing [taxable] pay or otherwise profit.

In my example, my company draws money for my labor, from another contractor who sells said labor to the end customer. The solo vehicle works great for the purpose of deferring tax on so-called “income” and your company can “contribute” a bunch. This is not the situation you have. Sorry…

move money from an IRA? a movie quote comes to mind…
“Why would you want a piece of ___ like that, when you have a ride like this?” Breakdown 1997