Tax, SDIRAs & Cost Segregation
Market News & Data
General Info
Real Estate Strategies

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal



Real Estate Classifieds
Reviews & Feedback
Updated about 4 years ago on .
Most recent reply
presented by

self-directed solo roth conversion
I have a self-directed solo 401k and want to convert some portion to Roth. Does the pro-rata rule apply to solo 401k?
Most Popular Reply

- CPA delivering RE Tax Tools: 1031 Exchange, SDIRA, 401(k), Cost Seg
- New York City, NY
- 555
- Votes |
- 573
- Posts
@Taylor L. Way overdue, but I make an effort to honor every tag - which I'm honored to receive - with a response... even if takes some time to get to it. :)
The pro rata rule does apply to 401k plan Roth conversions. BUT, (1) after-tax contributions and associated earnings can (theoretically) be isolated from (2) pre-tax contributions and associated earnings, thereby presenting opportunity to be more surgical & strategic with 401k & "QRP" conversions.
Caveat: This is still a way oversimplified response to a question that can have incredible nuance to it.