Who Uses this Roth Solo 401k Transfer to Roth IRA Procedure?

If you are closing your self-directed solo 401k because you are no longer self-employed or are over age 59 1/2, and you used Charles Schwab to hold your Roth self-directed solo 401k funds and now want to transfer your Roth solo 401k funds to a Roth IRA also at Schwab, then the following procedure applies when moving the Roth solo 401k funds to Roth IRA at Schwab.

First Open The Roth IRA at Charles Schwab

If you don’t already have a Roth IRA at Schwab, make sure to first one with them which can usually be done on-line.

Second Move the Funds from the Roth Solo 401k to the Roth IRA

To direct Schwab to move the funds from the Roth solo 401k to the Schwab Roth RA, complete Schwab’s form titled “Move Assets from My Schwab Brokerage Account” which you can download by Clicking Here. You can move the funds electronically to the new Roth IRA using the Schwab form which you will need to complete and submit to Schwab.

Third Complete our Online Form Directive For Form 1099-R Reporting Purposes

Ater you move the funds from the Roth solo 401k to the Roth IRA, make sure to complete the following online forms so that we collect the necessary information to issue the Form 1099-Rs to the IRS to report the non-taxable direct rollover to the Roth IRA. Click here for our on-line Form 1099-R form issuance form request. 

Do you also have Pre Tax Solo 401k funds to transfer?

If yes, then make sure to also open a separate Traditional IRA at Schwab if you don’t already have one as the pre tax solo 401k funds will need to be transferred to the Traditional IRA as well. Then, click here to follow the procedure for moving the pre tax solo 401k Schwab brokerage account funds to the Traditional IRA at Schwab.