Please check out this good question from our Daily Live Zoom call. Subscribe to our YouTube Channel to get notifications of our Daily FAQs.
Self-Employed 401k Question: How can I take withdrawals from my Solo 401k when I retire?
I am 69 years old and made my first distribution from my solo 401k.
I know a 20% tax must be paid through the government’s EFTPS web page.
I know to use my Solo 401k Trust’s name and EIN.
Is my Solo 401k plan paying the tax from my Solo 401k bank account?
Is this considered a distribution and if so do I include 20% more for the tax portion?
I know that you have an online form for collecting information needed for the required 1099-R. Do I fill this out once per year or for each distribution?
1. The 20% withholding amount is withheld from the distribution amount and paid via the EFTPS system. For example, if the Solo 401k owner takes a $10,000 distribution then $2,000 is withheld.
2. Please note that for good Solo 401k recording keeping practices our online form needs to be completed for each distribution.
Please note that we handle preparation and submission of the required 1099-R as part of our services for no additional charge: https://www.mysolo401k.net/solo-401k/solo-401k-pricing/