• Requires Withdrawal from IRA to Solo 401k Plan

A check is made payable in the name of the individual not the name of the solo 401k plan.

The individual then deposits the check in his or her personal bank account.

A 1099-R is issued using reporting code 1 or 7 to report the rollover.

  • 60 Day Rollover Rule

Funds must be redeposited in the same or another IRA or solo 401k plan within 60 days of receipt of funds withdrawn.

  • Once Per Year Rollover

A rollover can only be done once per 12 months and applies to all IRAs in aggregate.

  • Mandatory 20% Withholding

Applies to eligible rollover distributions from a plan such as former employer 401k (does not apply to distributions from IRAs).

Trustee-to-Trustee Transfer (Direct Transfer) to Solo 401k Plan

  • No Withdrawal Required

A check is made payable in the name of the solo 401k plan for the benefit of the solo 401k owner.

The solo 401k owner then deposits the check directly into the solo 401k bank account.

A 1099-R is issued using code “G” to report the direct-transfer.

  • No 60-Day Rollover Rule

Transfer is immediate

  • Once Per Year Rollover Not Applicable

There can be an unlimited number of direct transfers.

  • Mandatory 20% Withholding Not Applicable

Withholding never applies to plan direct transfers.

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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