Depositing the FULL Roth Solo 401k Funds to the Roth IRA

Depositing the FULL Roth funds from the Solo 401k bank/brokerage account to the Roth IRA:

IMPORTANT 1if 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 Roth IRA.

IMPORTANT 3: If your solo 401k holds any Pretax solo 401k funds, those will need to be transferred to a separate IRA, so please complete an additional Pretax solo 401k transfer form by CLICKING HERE.

Moving the Roth Solo 401k Funds

If by Check:

  • Make the FULL transfer check from the ROTH solo 401k account payable in the name of the new Roth IRA custodian F.B.O. your name.
  • List the Roth IRA account number and write “Full Solo 401k Direct Rollover to Roth 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 Roth IRA.

In-Kind Transfer of Alternative Investments (e.g., real estate) Held in the Roth Solo 401k Plan to the Roth IRA

If an alternative investment such as real estate is being transferred from the Roth solo 401k (in-kind transfer) to your Roth 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 Roth 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 Roth solo 401k to the Roth IRA, contact the brokerage form instructions on how to transfer the securities in-kind.

REPORTING THE FULL ROTH SOLO 401K  DIRECT ROLLOVER TO A ROTH IRA CLICK HERE

SOLO 401(K)

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