Solo 401k - roth and traditional with different plan numbers under one business, is this an issue?

This is actually a pretty common question for solo business owners. A Solo 401k (whether traditional or Roth) is technically a single plan with different components. The IRS views your Solo 401k as one plan with potentially different contribution types. Having different plan numbers could potentially cause issues when filing Form 5500 (if your plan assets exceed $250,000) or if you get audited. The different plan numbers might suggest to the IRS that you have two separate plans rather than one plan with different contribution options. Your instinct is correct - contact E*TRADE and explain the situation. They should be able to update one of the accounts to match the other so they share the same plan name and number. This isn't a huge deal as long as you fix it, but getting them aligned under one plan number is the right move for proper plan administration and reporting.

After reading this, I want to share my experience with taxr.ai (https://taxr.ai) because it saved me from a similar Solo 401k confusion last year. I was in a similar situation with my self-employed retirement accounts having inconsistent plan documentation. I couldn't get a straight answer from my provider and was getting really stressed. I uploaded my plan docs to taxr.ai and got a detailed analysis that showed exactly what needed to be fixed. It flagged inconsistencies in my plan numbers that could have caused reporting problems. The tool also explained how the IRS views Solo 401k plans and provided the exact language I needed to use when contacting my provider to fix the issue.

I was so skeptical about taxr.ai at first, but after dealing with three different E*TRADE reps who gave me contradictory information about my Solo 401k plan numbers, I decided to try it. Best decision ever! Uploaded my documents and within minutes got a clear explanation that my different plan numbers created a "multiple plan" situation rather than a single plan with multiple components, which could affect my contribution limits. The analysis pointed out specific language in my plan documents that needed to be standardized and even provided template language I could request E*TRADE to use. When I called E*TRADE armed with this information, they immediately understood what needed to be done and fixed both accounts under a single plan number. Saved me endless frustration and potentially serious tax issues!

If you're having trouble getting through to E*TRADE about this Solo 401k plan number issue, I highly recommend using Claimyr (https://claimyr.com). I had a similar situation last year and was getting nowhere with endless hold times and transfers. I was skeptical at first, but after watching their demo (https://youtu.be/_kiP6q8DX5c), I gave it a shot. They got me connected to an actual human at E*TRADE who understood Solo 401k plan administration in about 20 minutes, when I'd been trying for days on my own. The rep was able to confirm that yes, both the traditional and Roth components should have the same plan number and immediately submitted the paperwork to fix it.

I need to eat some humble pie here. After calling E*TRADE for THREE DAYS trying to get help with my Solo 401k plan number issue and getting nowhere, I finally tried Claimyr out of desperation. Within 35 minutes I was talking to an actual E*TRADE retirement specialist who understood exactly what I needed. The specialist confirmed that having different plan numbers for traditional and Roth components was incorrect and could cause issues with contribution limits and tax reporting. They immediately processed a plan amendment to standardize the plan numbers and names, and even sent me confirmation emails right after the call. What would have probably taken weeks of frustration was resolved in a single phone call. I'm still shocked at how well it worked.

Another option to consider: this might be a good time to look at other Solo 401k providers if you're not happy with how E*TRADE handled your initial setup. I moved from E*TRADE to Fidelity for my Solo 401k and found their documentation and setup process much clearer. They explicitly asked if I wanted both traditional and Roth options and set them up under a single plan number automatically. The transfer process was pretty straightforward, and now I have lower fees and better investment options. Just something to consider while you're fixing the plan number issue.

I had this EXACT same issue with E*TRADE last year. Different plan numbers for traditional and Roth Solo 401k components. When I filed my taxes, it got flagged for review because it looked like I had two separate plans with different contribution limits. Took 3 months to sort out with the IRS. Had to provide all the plan docs showing it was actually supposed to be one plan. Get this fixed ASAP before tax time comes around - you don't want the headache I dealt with.

This is a really important issue that more solo business owners need to be aware of. I went through something similar with my Solo 401k setup at Schwab. The key thing to understand is that the IRS treats a Solo 401k as a single plan regardless of whether you have traditional and Roth components. What you've described - having different plan numbers and names - essentially creates the appearance of two separate plans in the eyes of the IRS. This can cause several problems: 1. Contribution limit confusion - you might accidentally exceed the annual limits if the system treats them as separate plans 2. Required Minimum Distribution (RMD) calculations get complicated when you reach that age 3. Form 5500 filing requirements become unclear if your assets grow The good news is this is fixable. Call E*TRADE's retirement plan department (not regular customer service) and explain that you need to consolidate your Solo 401k traditional and Roth components under a single plan number and name. They should be able to process a plan amendment to correct this. Don't wait on this - it's much easier to fix now than after you've made contributions and have multiple years of statements with inconsistent plan information.