The transfer/direct-rollover of IRAs (traditional IRA, SIMPLE IRA and SEP IRA), pretax former employer plan funds including 401k, DBP, PSP, 403b, 457b, TSP, for example, to a self-directed solo is a reportable on Form 1099-R but NOT a taxable. Pursuant to the following IRS instructions https://www.irs.gov/pub/irs-pdf/i1099r.pdf see the following for the definition of a direct rollover.
Reporting the Direct Rollover on Form 1000-R
Box 1: Enter the total direct rollover amount
Box 2a: enter 0
Box 7: Enter code “G”
Compliance Note:
Different reporting applies to transfers of a Roth 401k plan as well as a Roth 403b, Roth 457, etc. to a Roth Solo 401k. For those rules, CLICK HERE.
