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Towards the Solo 401k limit, is it possible to deposit stock held in an investment account, and have that count towards the limit?

For example, if my 401k contribution limit is $20,000 annually, can I transfer 1000 units of a stock that is currently valued at $20 each from my post-tax investment account? Will there be any tax implications on my investment account for this transfer?

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No. This account, along with IRAs, can only take 'deposits' in cash. They may accept transfers from similar tax status accounts "in kind", e.g. I can transfer assets from my pre-tax IRA to my Traditional Solo 401(k), or Roth IRA asset to a Roth Solo 401(k).

  • Will the transfer from a pre tax IRA count towards the annual solo 401k limit? – rs79 May 23 at 23:51
  • No. It’s a transfer. Does not count toward deposit limit. – JTP - Apologise to Monica May 24 at 0:09
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The solo 401k can only receive cash deposits. If you want to transfer assets from your existing investment account you could consider 'directing' your dividend income to your Solo 401K and or sell off your securities and transfer that cash. If you have gain in the securities then there will be a capital gain tax on those sales. Inversely if you sell securities at a loss then you will be able to use that loss against your ordinary income (or capital gains), assuming you do not buy the equivalent securities back in your Solo 401K within 30 days (see wash sale rules).

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