How to Transfer an IRA Including a SEP IRA From Merrill Lynch to a Self-Directed Solo 401k Plan

While the Roth IRA rules do not allow for the transfer to a qualified plan including a self-directed solo 401k plan, this same rule does not apply to pretax funds held in a traditional IRA or a SEP IRA. As a result, it is no uncommon to fund a solo 401k plan by transferring / rolling over Traditional IRA or SEP IRA funds from accounts held at Merrill Lynch.

The following information will be helpful when working with your solo 401k provider to process the non-taxable IRA direct-rollover.

NOTE: If you use My Solo 401k Financial as your solo 401k plan provider, they will fill out the Merrill Lynch IRA transfer-out form for you.

Use the Merrill Lynch One Time Distribution Form

 How to Complete the Merrill Lynch Transfer Form

Part 1Account Owner Information: Verify your IRA account number, name, and enter your DOB.

Part 2Reason for Withdrawal:  Check off to request a direct rollover to an eligible retirement plan, as a solo 401k plan is a retirement plan.

Part 3: Amount of Distribution: Check off the applicable box for the full or partial transfer of the account.

Part 4Withholding Election: We already checked off the Check off ” Do Not withhold federal income tax, since the IRA is being transferred to a 401k plan and taxes do not apply.

Part 5: Distribution Instructions:  Check off  Direct Rollover and check off Mail check to the mailing address on file.  he direct-rollover check will be made payable in the name of the solo 401k and mailed to you directly for deposit into the solo 401k brokerage account. NOTE:  Please verify your address.

Part 6: DOES NOT APPLY Since this is not a Taxable Distribution

Part 7: Direct Rollover to Third-Party…: Check off Make check payable to.  for plan name, enter the name of the solo 401k plan. For FBO, enter your name. Enter your mailing address.  Check off 401k under Plan Account Type. The direct-rollover check will be made payable in the name of the solo 401k which further confirms this is a non-taxable event.

Part 7: Signature: Please sign and date. NOTE: You need to sign with a black or blue pen (handwritten signature), as Merrill Lynch will not accept electronic signatures.

Submitting the Signed Transfer Form to Merrill Lynch for Processing

  • Per the transfer form (see the top of the form), the signed transfer form can be submitted to Millennium Trust by mail or by fax:
If by Fax: 866-557-2690
If by Mail: P.O. Box 29002, Hot Springs, AR 71903-9002

What Happens After I Submit the Signed Transfer Form to Merrill Lynch  

1. You will need to call them 1 to 2 business days later to determine if they received your signed transfer form and if they have any questions.
2. If Merrill Lynch has any questions regarding the transfer request, you should  conference your solo 401k plan provider since they don’t have access to your IRA account.
3. Once you receive the transfer check in the mail, confirm that it was made payable in the name of the solo 401k  plan, and then deposit the check directly into the solo 401k account that is for your benefit.
4. Sign the back of the check Since you are the trustee of the solo 401k plan, and list the name of the solo 41k plan, and the account number.
5. Deposit the transfer check at the local  branch.

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About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>

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