Tulsa, OK asked in Bankruptcy, Business Law and Tax Law for Oklahoma

Q: Trustee in ch 7, Oklahoma, objects to solo 401k and related business is not legitimate, Roth ira transfers not exempt

I opened a Solo 401k under a llc I setup and have had little income . I transferred my IRA and Roth IRA finds to my new 401k. Three months later I had to file chapter 7. The trustee has said that my business is not legitimate, he gives no support of this, but I am scheduled for a 2004 deposition, assuming he want to fish for fraud. So the Roth IRA was not supposed to go to my 401k, as it is called a prohibited transaction, so the trustee wants that money as he said it is not exempt. I believe it can be sent back to the institution that errousoly sent the funds over.

Hope this gives some information to help point me to legal cases or regs that support the exemption

1 Lawyer Answer
Timothy Denison
Timothy Denison
  • Bankruptcy Lawyer
  • Louisville, KY

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