Who Uses this Procedure?

If you are closing your self-directed solo 401k because you are no longer self-employed or are over age 59 1/2, and you used Charles Schwab to hold your pre tax self-directed solo 401k funds and now want to transfer your entire pre tax solo 401k funds to a Traditional IRA also at Schwab, then the following procedure applies when moving the pre tax solo 401k funds to the traditional IRA.

First Open The Traditional IRA at Charles Schwab

If you don’t already have a Traditional IRA at Schwab, make sure to first open one with them which can usually be done on-line.

Second Move the Funds from the Pre Tax Solo 401k to the Traditional IRA

To direct Schwab to move the funds from the pre tax solo 401k to the Schwab traditional IRA, complete Schwab’s form titled “Move Assets from My Schwab Brokerage Account” which you can download by Clicking Here. You can move the funds electronically to the new IRA using the Schwab form which you will need to complete and submit to Schwab.

Third Complete our Online Form Directive For Form 1099-R Reporting Purposes

Ater you move the funds from the pre tax solo 401k to the traditional IRA, make sure to complete the following online forms so that we collect the necessary information to issue the Form 1099-Rs to the IRS to report the non-taxable direct rollovers to the IRAs.  Click here for our on-line Form 1099-R form issuance form request. 

Do you also have Roth Solo 401k funds to transfer?

If yes, then make sure to also open a separate Roth IRA at Schwab if you don’t already have one as the Roth solo 401k funds will need to be transferred to the Roth IRA as well. Then, click here to follow the procedure for moving the Roth solo 401k Schwab brokerage account funds to the Roth IRA at Schwab.