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Buy asset from ROTH IRA to ROTH 401k. Prohibited transaction?
While it is not possible to roll over from a ROTH IRA to a ROTH 401(k), would it be possible to have the ROTH 401(k) buy an asset from a ROTH IRA? Would it be a prohibited transaction?
I have some investments in a syndication that would trigger important UDFI taxes at final redemption. I would like to be able to transfer them to a ROTH 401(k) to avoid this tax. Initially when the investment was bough I didn't have enough money in the ROTH 401(k) and had to use the ROTH IRA instead. Now that I have enough cash of in the ROTH 401(k) I would like to buy it back from the ROTH IRA.
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what if your traditional Ira sold an asset to your Roth IRA?-obviously a prohibited transaction. I think it's stupid that you can't roll over a Roth IRA into a Roth 401(k) but it wouldn't be the first IRS rule that I thought was stupid. Also research the "indirect rule" it will also tell you not to do it.


