Process for Moving Assets Between Solo 401k or Individual 401k or Individual K Plans

The distributing Solo 401k or Individual 401k plan may process the direct rollover/transfer to another Solo 401k or Individual K plan in any one or combination of the following methods in accordance with Treas. Reg. 1.401(a)(31)-1, A-3.

1. Issue check directly to the Solo 401k or Individual 401kplan that is receiving the rollover.

EXAMPLE: Jane Do Solo 401k Trust, f/b/o Jane Do, Trustee

2. A wire transfer of the funds to the eligible Solo 401k or Individual 401k that is receiving the rollover.

EXAMPLE: Wiring instructions are submitted to releasing Solo 401k/Individual 401k custodian by new bank or brokerage firm holding new Solo 401k/Individual 401k and funds as subsequently wired.

3. Issue a check to the participant/trustee that is made payable to the eligible Solo 401k or Individual 401k plan that is receiving the rollover.

EXAMPLE: John Do Solo 401k Trust, f/b/o Jane Do, Trustee

The only difference here is that the check is mailed directly to the Solo 401k or Individual 401k trustee.

4. Transfer/Direct Rollover of Noncash Assets: To the extent the direct rollover is in the form of noncash assets, title to the property would be directly transferred to the eligible Solo 401k or Individual 401k plan that is receiving the rollover, and the noncash assets would be mailed to the Trustee of the Solo 401k or Individual 401k.

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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