I'd like to do a direct rollover to a solo 401k but id also like to have a roth 401k available as well as loan ability. Is that like looking for a unicorn? Any suggestions would be great. I started researching companies and then thought what am i doing. Get your *** on BP! Thanks,
As long as you have a company and earned income it’s an easy task to have a 401k Roth and traditional.
First, you must be eligible to set up a Solo 401k. In order to be eligible, you must be self-employed (e.g. providing goods and/or services through your personal effort), reporting self-employment activity on your taxes (e.g. Schedule C if you a sole proprietor) & you do not have any full-time w-2 employees (i.e. working 1000 hours or more per year) working for your self-employed business or otherwise.
The repayment terms are equal monthly/quarterly payments (as you prefer) of principal and interest (e.g. prime + 1%) spread over a 5 year term (or longer if you will use the loan to purchase your primary residence). There are no prepayment penalties and no restrictions on what you can do with the proceeds of the Solo 401k loan. This means that the typical Solo 401k real estate rules (i.e. purchasing property from an unrelated person, living in the property, working on the property, etc.) do not apply.
Here is more information regarding Solo 401k loans:
No, what you are looking for is not a unicorn, you are describing truly self-directed Solo 401k. Here is a discussion you may want to visit to learn more:
The Solo 401k will offer what you're looking for as long as you are eligible. Your plan can even allow you to convert pre-tax assets to Roth within the plan.
Thanks you guys for all the advice and for posting all the links for research! I sincerely appreciate it.