Moving ALL the pretax funds from the solo 401k bank/brokerage account to your personal bank account:

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 pretax solo 401k distribution amount.

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

Depositing the Full Taxable Solo 401k Distribution (closing the plan)

• By Check: Make the check payable in your name and deposit the funds directly into your personal bank account. In the memo section of the check, write “Full Distribution.”
• Electronically: You may also have the bank or brokerage firm process the funds from the solo 401k electronically such as by wire to your personal bank account.

In-kind Distribution of Alternative Investments (e.g. real estate) Held in the Pretax Solo 401k

If an alternative investment such as real estate is being distributed from the solo 401k (in-kind distribution) to your own name, make sure to first get the property valued /appraised to ensure the correct amount of taxes are paid on the distribution and reported on the Form 1099-R. You will also need to have the property assigned/deeded from the solo 401k to your own name. If real estate, You will need to contact the county recorder to have this done.

REPORTING THE FULL PRETAX SOLO 401K  TAXABLE DISTRIBUTIOON CLICK HERE.