QUESTION: Last year I processed a direct rollover of my TIAA-CREF 403(b) to a self-directed Solo 401k offered by a solo 401k provider out of New York. Do you happen to know how I would go about reporting the 403(b) rollover to my self-directed solo 401k? I noticed that you answer a lot of questions pertaining to self-directed solo 401k so though I would run it by you.
Your assistance is greatly appreciated,
ANSWER: To report the transfer or direct-rollover from a 403(b) to a self-directed solo 401k, you will need the following two forms:
Form 1099-R is used to report distributions from IRAs, 401k plans and 403(b) annuities.
Since you processed a direct rollover from a 403(b) to a Solo 401k plan (also referred to as a self-directed solo 401k), when you receive your Form 1099-R from TIAA-CREF, confirm that they indeed processed a direct rollover by checking for the following:
- That Box 1, Gross Distribution, lists the correct amount directly rolled over;
- That Box 2, Taxable Amount, reads zero because the funds were directly rolled over to a Solo 401k; and
- That Box 7, Distribution Code(s), shows letter “G”, the code denoting direct rollover to another qualified plan such as a self-directed Solo 401k.
If a code G is not reflected in box 7, contact TIAA-CREF right away and have them issue a corrected Form 1099-R. A this point you may also want to get you Solo 401k provider involved that you opened the self-directed solo 401k through as they may need to compose an explanation letter for you and mail it to TIAA-CREF to make the necessary corrections to the Form 1099-R.
Form 1040 or 1040A
After you have the correct Form 1099-R from TIAA-CREF showing the direct rollover from 403(b) to Solo 401k, you will need to report the direct rollover on either Form 1040 or 1040A as follows.
- Entire 403(b) distribution goes on line 12a if you file Form 1040A, on line 16a if you use the long Form 1040.
- 0 goes in box 12b of Form 1040A or in line 16b if you file Form 1040 since you deposited the 403(b) annuity funds into the Self-Directed Solo 401k checking account. Remember to write ” rollover to 401k” next to the amount.
Lastly, submit a copy of your Form 1099-R with your Form 1040 or 1040A.