If you Retire Early or Get Laid Off, Consider Transferring Your Former Employer Funds to a Self-Directed Solo 401k

Resulting from the COVID-19 pandemic, many full-time employer have been forced to push their W-2 employees out the door and have done so by offering early retirement packages.

If you leave (willingly or unwillingly)  your employer and participate in their 401k plan, Defined Benefit Plan or SEP IRA, for example, consider transferring those funds to a self-directed solo 401k plan if you meet the solo 401k eligibility requirements. To see if you qualify for a solo 401k plan, VISIT HERE.

When a former employer retirement plan or IRA gets transferred to a self-directed solo 401k plan, the movement of the funds will not be considered a taxable distribution because the funds are moving to another retirement account–the solo 401k.

Why a Direct-Roll Over?

By directly rolling over a former employer retirement plan to a solo 401k plan, you don’t pay tax on it until you withdraw it from the new plan. By directly rolling over,  your retirement funds continues to grow tax-deferred.

How do I Complete a Direct Rollover?

As the solo 401k plan provider, My Solo 401k Financial can guide your through the direct-rollover of the former employer plan to the solo 401k plan. Your former employer plan administrator may required a form filled out or will accept phone instructions to make the payment directly to the solo 401k retirement plan. Contact your former employer plan administrator for instructions.

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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