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  • 401k from previous employer to solo 401k

    I just recently joined a practice two months ago from fellowship and need some advice on what to do with the 401k Ive kept during training.

    I have a balance of roughly 180k in this account but my practice plan will not allow me to join the practice 401k until a year passes from my employment date for some strange reason.  I would like to access the funds from this account via a loan to pay down my student loans.

     

    Could I transfer my funds to a solo 401k I setup and access the funds this way?  If so what would the paper work entail and who would be the best custodian to set this up with amongst TD Ameritrade, Fidelity or Schwab?

  • #2




    I just recently joined a practice two months ago from fellowship and need some advice on what to do with the 401k Ive kept during training.

    I have a balance of roughly 180k in this account but my practice plan will not allow me to join the practice 401k until a year passes from my employment date for some strange reason.  I would like to access the funds from this account via a loan to pay down my student loans.

    Could I transfer my funds to a solo 401k I setup and access the funds this way?  If so what would the paper work entail and who would be the best custodian to set this up with amongst TD Ameritrade, Fidelity or Schwab?
    Click to expand...


    I really, really hope you'll reconsider. You've got such a fantastic start on retirement - is it not possible to vigorously attack those student loans with your new pay as an attending?

    If you are determined to do this, you'll have to find a custodian that will customize a plan document to allow for loans. I'm not sure you can get this done without paying a fee.

    btw, it is not unusual for an employer to require new hires to wait a year before qualifying to participate in the retirement plan.
    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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    • #3
      ^^ Everything Johanna said!

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      • #4
        Using your retirement funds for student loans is ill-advised, not least because of the taxes and penalties incurred...

        If you're IR, you should definitely be able to put your gigantic income toward those student loans, which are hopefully refinanced down to a reasonable interest rate (which will probably be about half of what you'd make on retirement, hopefully).

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        • #5




          Using your retirement funds for student loans is ill-advised, not least because of the taxes and penalties incurred…
          Click to expand...


          Actually, there are no taxes and penalties for loans of up to $50k (or the lesser of 1/2 the account balance, not an issue here). But I agree with your overall point.
          Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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          • #6
            Also not clear you can set up a solo 401k.  How are you going to be paid in the new job?  Do you have side-job 1099 income?

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            • #7




              Also not clear you can set up a solo 401k.  How are you going to be paid in the new job?  Do you have side-job 1099 income?
              Click to expand...


              Good point!
              Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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