Depositing the FULL Pretax funds from the Solo 401k bank/brokerage account to the Pretax IRA:
IMPORTANT 1: if you have any outstanding solo 401(k) loans, they first must be paid back to avoid any taxes and penalties. Please let me know if this is the case and I will provide more information.
IMPORTANT 2: if you hold any alternative assets in the solo 401k such as real estate or notes, for example, you need to include the value of those assets in the total value of the solo 401k that is being transferred to the IRA.
IMPORTANT 3: If your solo 401k holds any Roth solo 401k funds, those will need to be transferred to a separate IRA, so please complete an additional Roth solo 401k transfer form by CLICKING HERE.
Moving the Funds
If by Check:
- Make the FULL transfer check from the PRETAX solo 401k account payable in the name of the new IRA custodian F.B.O. your name.
- List the IRA account number and write “Full Solo 401k Direct Rollover to Pretax IRA” on the memo section of the check.
If Electronically:
- You may also have the bank or brokerage form holding the solo 401k funds move the funds electronically such as by wire to your Pretax IRA.
In-Kind Transfer of Alternative Investments (e.g., real estate) Held in the Solo 401k Plan to the Pretax IRA
If an alternative investment such as real estate is being transferred from the solo 401k (in-kind transfer) to your pretax IRA, make sure to first get the property valued /appraised to ensure the correct amount transfer amount is reported on Form 1099-R to the IRS, and you will need to have the property assigned/deeded from the solo 401k to the IRA. If real estate, You will need to contact the county recorder to have this done.
If transferring equities such as stocks and mutual funds from the solo 401k to the pretax IRA, contact the brokerage form instructions on how to transfer the securities in-kind.