Depositing the Pretax Solo 401k Funds to Your Traditional IRA

Moving the funds from the solo 401k bank/brokerage account to your personal Traditional IRA:

  • By Check: Make the check payable in the name of the IRA custodian for your benefit, IRA. For Example, if your IRA is at Fidelity Investments, the check would be made payable as follows: Fidelity Investments F.B.O John Do, IRA
  • Deposit the funds directly into your Traditional IRA account. In the memo section of the check, write “Partial Direct Rollover to Traditional IRA”
  • Electronically: You may also have the bank or brokerage firm process the funds from the solo 401k electronically such as by wire to your Traditional IRA account.

In-kind Transfer of Real Estate Held in the Solo 401k

If an alternative investment such as real estate is being transferred to a self-directed IRA from the solo 401k (in-kind transfer), make sure to first get the property valued /appraised to ensure the correct value is transferred to the IRA, and you will need to work with the IRA custodian 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.

SOLO 401(K)