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Can I transfer stock from my Solo 401k (E-Trade/Fidelity/Schwab/TD) to my self-directed Solo 401k?
I am upgrading my existing Solo 401k at E*Trade to a self-directed Solo 401k in order to make Mega Backdoor Roth Solo 401k contributions and invest in alternative investments (e.g. real estate, private placements, etc.).
Can my stock in my existing solo 401(k) brokerage account at E*TRADE be transferred in-kind to the new self-directed Solo 401k? Or do I need to liquidate and sell the stock before initiating the transfer?
RESPONSE:
Good question as we help people convert their existing solo 401k to our self-directed solo 401k to take advantage of the services and features that our plan offers.
The process to convert the existing solo 401k plan to our plan is referred to as a restatement.
As part of the restatement, new accounts will need to be opened for the restated Solo 401k plan at the bank or brokerage of choice.
If the solo 401k owner wishes to transfer stock in-kind, we would prepare the paperwork to open a new account at E*Trade for the restated solo 401k plan so that the stock can be transferred from the existing account to the new account.
