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 trust2) Address: Since you are the solo 401k owner/trustee, use your address so that they send the check to you3) 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.
