Hi Guys, I have some money invested in Roth IRa account in Vanguard and money for kids education on Schwab 529 plans for college education. I would like to know the following.
1. Is there a way I can move the money from Roth IRa to a self-directed IRA with solok option for investing in real estate?
2. Is there an option to move money from my Schwab 529 plan to a self-directed IRA for investing and what is the implication on taxes?
3. I also get bonuses from my company every year. Can we move the bonuses to the self-directed IRA account and if so what are the tax implications for it?
1. You can transfer your Vanguard Roth into self-directed IRA. SD IRA and self-directed Solo 401k are two distinct retirement plans. IRS rules do not allow Roth IRA to be rolled over to 401k. Also Solo K is not for everyone, one must be eligible to establish this plan.
2. Beginning in 2024, the federal legislation known as the SECURE Act 2.0 gives a 529 plan beneficiary the ability to transfer 529 plan funds into their own Roth IRA without paying taxes or penalties. Eligibility & criteria: The 529 plan must have been open for a minimum of 15 years.
3. You can contribute up to $6,500 to Roth IRA each year. Contributions to Roth IRA are post-tax so there are no tax implications.