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Fidelity Solo 401k for Voluntary After-Tax Contributions

10/1/2020

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I currently have a Fidelity self-employed (Solo) 401(k) but I am disappointed that I am not allowed to make voluntary after-tax contributions.

QUESTION:

Would I be able to have a Fidelity self-employed 401(k) for pre-tax employee and employer contributions and a MySolo401k (held at Fidelity) for voluntary after-tax contributions?  

ANSWER:

Yes, a self-directed solo 401k from a solo 401k provider such as My Solo 401k Financial plan does allow for Voluntary After-Tax contributions. Please see the below post and video for more information on 
Voluntary After-Tax: click here. 

The 
existing self-employed 401k at Fidelity can be restated to a self-directed solo 401k and you could use Fidelity as the custodian of the cash.  The self-directed solo 401k provider would complete all the necessary Fidelity brokerage forms and internal transfer form. The provider would set up a Pretax Solo 401k for your employee and employer contributions, the Voluntary After-Tax Solo 401k sub-account, and then a Roth Solo 401k account or if you wanted to you can convert the After-Tax contributions to a Roth IRA at an institution of your choice. To learn more about how you can use a self-directed solo 401k provider and Fidelity at the same time, CLICK HERE.
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    Author


    George Blower is a principal of My Solo 401k Financial LLC and also serves as the General Counsel with responsibility for providing all legal services to the organization.  

    Prior to joining My Solo 401k Financial, he served as general counsel for a subsidiary of a Fortune 500 financial services company.  

    He received his bachelor’s degree in economics at the University of Michigan in 1998 with honors. He received his juris doctorate from Harvard Law School in 2001. He is a member of the Michigan and Ohio bar associations.

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