Ah ok got it. I actually didYes by intermediary account* I mean Etrade, if your Plan was with Vanguard since a while back, then you amended the Plan to Etrade with an opening date on, for example, May 23, then amended the Plan to Schwab with an opening date of, for example, May 24. Under this scenario, you technically never have more than 1 Plan and that Plan is using Schwab as a provider.Not sure what you mean by intermediary account. You mean the 1st Plan that was amended? (in my case etrade).Thinking about your situation more, if you opened the 401k at both Schwab and Etrade as amendments to your current Plan, it could be that you only have a single Plan at whichever you opened last. That would eliminate the compliance problem.got it. thanks for the reference!
If I understand this correctly, you have now amended your Plan and made it 2 Plans at 2 different providers. You can only have one Solo 401k at a time, so you need to choose and choose quickly before the IRS decides you are not in compliance and you must distribute all Plan assets in a taxable distribution. See further discussion here: viewtopic.php?f=2&t=433880&newpost=7917 ... ead#unread
The question is what to do about the intermediary account. Normally, you don’t need to take any action to notify a provider that you have amended your Plan with a different provider. The original provider knows because you have transferred the Plan assets out. If you just ignore the intermediary, I.e., never transfer funds in or out, that provider may hold the account open waiting for future funds. Make sure you, as the Plan Administrator, keep good records showing all of the successive Plan documents with dates.
The dates for both amendments were the same. The different was account opening date, based on date signed.
* I probably should have justused the term “intermediate”, meaning the one with the provider between Vanguard and the one you opened last.
etrade traditional
schwab roth
etrade roth
etrade forces you to have a traditional first.
decided to go with etrade roth and close the schwab roth. not planning to use the etrade traditional. hopefully it's ok!
Statistics: Posted by jamesbogle — Sun Jun 23, 2024 1:57 am