I have several old W-2 401ks. I want to consolidate them into one place and have as much control as possible over my money. I plan to set up Mega Backdoor Roth, so I can't roll them into an IRA.
I've received an EIN from the IRS and opened a Solo/Self-Employed 401k account with Fidelity. (Current balance: $0)
I do NOT plan to make ANY 401k contributions to this account. I do NOT do any self-employed work on the side at this time. I just want the account to exist as a holding ground for my old W-2 401ks. Is this legal? And if so, are there any issues I need to avoid other than filing form 5500 when the balance reaches $250k?
I called Fidelity and they told me that IRS rules require that the first contribution to the Solo 401k be an actual contribution, not a rollover/transfer. I can't find that anywhere online - does anyone have a source?
original posted by xuor to r/personalfinance on Wed, 06 Mar 2024 01:13:37 GMT.