re: 401K advice- how to transfer from company plan while still an employee?

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Is it possible to convert an existing 401K (with both traditional and roth 401K balances) into a rollover IRA (with the roth 401K balance being converted into an existing roth IRA) while still being an employee of a company?

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As already mentioned, it's dependent on your company. Can consult HR and your plan document to see if in-service rollovers or distributions are allowed. This is partially how some people are able do a mega backdoor roth.

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If you convert a traditional 401K to a rollover IRA, does that mess up backdoor Roth contributions in the future (as you need traditonal IRA balances with zero gains to avoid tax issues)?

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Whatever amount is in the rollover ira will be subject to calculations in the pro rata rule. So yes will have tax implications for a backdoor roth.

For the pro rata calculation, it only matters what your balance on 12/31 is. So you could go 401k -> rollover ira -> 401k at new job and not have to worry about the pro rata rule assuming it all take place before 12/31. With said, you would need to make sure that your new employer 401k plan would allow you to rollover your ira back into the 401k.

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Can I open up a solo 401K during that month and transfer the old employer plan over?

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Seems sketch If you don't have a legitmate business. In any case, you'd have to find the right solo401k servicer. Not all solo401k allow you to rollover IRAs into them. Additionally some of the solo 401k can still be restrictive in terms of investment options. You'd have to research where you would considering opening one. Sounds like a lot of hassle with no real benefit.

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But those are the only two requirements listed with the IRS for solo 401 eligibility.... no full time employees and the presence of self employment activity (easily proven with an LLC). There are plenty of articles online talking about having a solo 401k while being fully employed elsewhere.

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Like I said, talk to your CPA. It came be done, just seems like a lot of work and potential pitfalls to buy individual stocks.

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So what’s an easier way to get to a self directed 401K option?

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There really isn’t. You’re trying to get a self directed 401k to rollover your old 401k to buy individual stocks while still preserving your backdoor Roth options. That’s asking a lot. Can’t you just buy the best MFs offered in your 401k and buy stocks elsewhere? Are you lacking individual stock exposure?

I just did my old 401k to IRA, have complete control. I don't know the details of how to do a back door Roth. I fund my Roth with money from my trading account. What your trying to do with the back door is past my knowledge.

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Nope that’s not the issue. I ditched all mutual fund exposure (in my brokerage accounts and IRA’s at least) after March 2020 and now am all in on picking my own stock portfolio. My Roth IRA had over a 100 % return last year while my 401K only did 30%. Mutual funds just aren’t my style anymore.

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Are you comparing your 401k’s return (full year) to your self-directed returns based on stocks you bought in March, presumably near the bottom (when the was S&P 500 had nearly a 75% return)?

Nothing wrong with specific stock exposure as part of the whole portfolio in your 401k, but one year is just not a good sample size

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Most of my 401K would go into ARK etfs if I had the chance, but of course most Stone Age employee plans don’t have those as options.

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You do you, but those ARK etfs were major under performers for the majority of their existence. It seems like you’re going all in as if 2020 returns are normal and repeatable.

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You do you, but those ARK etfs were major under performers for the majority of their existence. It seems like you’re going all in as if 2020 returns are normal and repeatable.

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Mostly i'll be investing in the ARKX space ETF that's coming out. I agree most tech stocks are going to see pain the next few months. But the growth story is just beginning in space with Spacex's advances. The cost to getting payloads to orbit is going to lessen dramatically.

My company uses Principle to manage our 401k. Principle does have the option for a self directed stock brokerage account setup within the 401k plan. But it took me some digging and I had to fill out and mail in extra paperwork to get it set up. It could be an option with your 401k plan, but they may not advertise it because they make their money managing your account for you. Try calling them and ask specifically if they offer a self directed stock brokerage account.