THIS STEP IS TO BE COMPLETED AFTER YOU RECEIVE YOUR PLAN DOCUMENTS
If you intend to rollover from your existing qualified retirement account(s) into the Solo 401k, your next step is to initiate the direct rollover process.
Please read through all instructions carefully. Any departure from these instructions may result in delays or denied requests.
BEFORE PROCEEDING, PLEASE NOTE
- Check with your custodian on their timeframe for processing your request. This will vary from custodian to custodian.
- When communicating with the custodian, be clear that this is a direct rollover into a qualified retirement plan. This should not be processed as a distribution to you personally.
- You may need to liquidate with the custodian before initiating the direct rollover into your Solo 401k
- When requesting a transfer or rollover check, the check needs to be addressed to the Solo 401k trust, NOT to you personally:
ABC 401k Plan FBO (your name)*
*You can check the exact name of your Solo 401k trust by checking the EIN document that was included in your set of plan documents.
- Most custodians will only issue a direct rollover as a check. Once you receive the rollover check, make a copy of the check and the rollover documents for your records.
- Some brokerages, such as TradeStation and TD Ameritrade, require specific wording for incoming rollover checks. See our “Bank Account Set Up” instructions for more information listed under these brokerages.
- The rollover check, while not addressed to you, should be sent to your address. Once you receive the rollover check in the mail, you can then deposit it into the new account for your Solo 401k. If the new account is at our recommended bank, you can use their mobile deposit feature for this.
MOVING FUNDS FROM AN IRA
Such as:
- Traditional IRA
- SEP IRA
Transferring your IRA into your new Solo 401k Plan should be processed as a direct rollover
- Start by inquiring with your IRA custodian if they require their own form for initiating a rollover
- If they require their own form, their form must indicate that this is a direct rollover into another qualified retirement plan. The IRA custodian must code it as a direct rollover (not a distribution to you personally) on their end in order to process your request properly.
- If they will accept our rollover form, complete the form according to the instructions given below
The form can be emailed to us for review before submitting to your custodian. Once reviewed, the form must then be submitted to the custodian.
- If your current custodian is not familiar with the Solo 401k, you can copy the information in the link below in an email to them. Include the documents indicated in the letter as well.
MOVING FUNDS FROM AN EMPLOYER-SPONSORED PLAN
Such as:
- 401k
- 457
- 403b
- Governmental or other tax-exempt employer/ organization retirement plan, such as profit sharing plans, defined benefit plans, etc.
Rolling over your employer-sponsored plan into your new Solo 401k Plan should be processed as a direct rollover
- Start by inquiring with your plan custodian for their form for initiating a direct rollover
- Their form must indicate that this is a direct rollover into another qualified retirement plan. The plan custodian must code it as a direct rollover (not a distribution to you personally) on their end in order to process your request properly.