Using Rocket Dollar's preferred banking partner, you can open an account for Traditional (pre-tax) dollars and an account for Roth (post-tax) dollars. You can then roll over Traditional IRAs or transfer an old 401(k) from a previous employer.
Sign up, complete and sign your paperwork
- For a quick step-by-step review of how to open your Solo 401(k) account, you can visit the step-by-step guide.
- You sign up on rocketdollar.com/signup
What bank should I use?
- We have a preferred banking partner. Our Support team will introduce them to you during account fulfillment. This is to ensure that you have a robust customer experience from start to finish, as our preferred partner is highly familiar with the self-directed account structure.
Where do Traditional and Roth Rollovers go?
- At Rocket Dollar's preferred banking partner, you can open two trust bank accounts: One for Traditional (pre-tax) dollars and one for Roth (after-tax) dollars.
- If you plan on making both Traditional and Roth contributions, you should open both accounts! MAKE SURE to name them correctly, and that you do not commingle Traditional and Roth dollars!
- If you plan on making Roth conversions, you should open a third trust bank account for pre-tax conversions.
Why are 401(k) rollovers slower and antiquated? Is there anything else to keep in mind while doing them?
- You usually need to have left a job to make a rollover, but check if your current work plan has in-service distributions.
- Sometimes your old HR department or boss might have to give you a 401(k) distribution form, which you will need to sign and complete. This may be needed so the company approving the rollover can verify it is going to the right person.
- Many 401(k)s still write physical checks in your name and mail them between providers. MAKE SURE that the check is made out to the correct trust/plan document name of your Rocket Dollar solo 401(k)
- Most employer 401(k)s are tied to a business, aka the retirement plan sponsor. The plan sponsor is technically writing the check (your record-keeper will help you do this) which is much slower than an IRA-to-IRA transfer. More moving pieces makes it slower to process certain 401(k)-related transactions.