Report 403(b) Direct Rollover to Solo 401k Plan

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,

Jennifer P

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.

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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