Can I roll over or transfer old retirement accounts into my Rocket Dollar Self-Directed Solo 401(k)? Where do Traditional and Roth Rollovers go?
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.
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.