How to Transfer Former Employer 401k With Fidelity to a Solo 401k Plan

QUESTION:

My name is Kate and recently became self-employed,and I have a former employer 401k retirement plan at Fidelity Investments that I would like to transfer to my soon to be solo 401k with checkbook control.  Do you know what needs to be done to accomplish this transfer from Fidelity so that it will not result in taxes and penalties?

ANSWER:

Good question. Once you establish the solo 401k with your solo 401k provider, the solo 401k provider can call Fidelity Investments with you to initiate the transfer over the phone.
The steps to initiate a trustee-to-trustee transfer (direct rollover) of your former employer plan at Fidelity to a Solo 401k Trust consist of the following:  
 
A call will need to be placed with Fidelity (800-835-5095) to request the transfer. Here is the information that Fidelity generally asks  when initiating a  401k transfer from a former employer 401k.
 
1) Qualified Plan name:  Provide the name of your solo 401k trust
2) Address: Since you are the solo 401k owner/trustee, use your address so that they send the check to you
3) Important: Have Fidelity Investments issue the check payable in the name of the solo 401k for your benefit. For example, if the plan name is Celtics Solo 401k Trust and your name is Larry Byird, Fidelity would need to issue the check payable as follows: Celtics Solo 401k Trust F.B.O. Larry Byird
Note: You may wish to ask about an expedite option when you call Fidelity Investments.
 
 

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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