If you are self-employed and decide to open a self-directed solo 401k for investing in alternative investments such as real estate, notes, cryptocurrency, metals or private investments, and want to fund the solo 401k account using your existing self-directed IRA (non Roth IRA), the following information will be helpful when working with your solo 401k provider to process the non-taxable IRA direct-rollover.
NOTE: If you use My Solo 401k Financial as your solo 401k plan provider, they will fill out the Millennium IRA transfer-out form for you.
Use the Millennium Trust Company IRA Transfer Form
Millennium Trust requires their specific IRA transfer form titled “IRA Distribution Request.”
Quick Hitters on How to Complete the Millennium Trust Company IRA Transfer Form
- Select Direct Rollover
- Select total or partial distribution
- Select to have a check mailed to your address of record since you are the trustee of the self-directed solo 401k plan, and have the check made payable in the name of the solo 401k plan FBO your name.
- Per the form, the form does not need to be notarized unless the check is not mailed to your address of record.
Submitting the Signed Transfer Form to Millennium Trust Company for Processing
- Per the transfer form (see the top of the form), the signed transfer form can be submitted to Millennium Trust by email or by fax:
If by E-mail: Distributions@
If by Fax: 630-472-5392
What Happens After I Submit the Signed Transfer Form to Millennium Trust
1. You will need to call them 1 to 2 business days later to determine if they received your signed transfer form and if they have any questions.
2. Once you receive the transfer check in the mail, confirm that it was made payable in the name of the solo 401k plan, and then deposit the check directly into the solo 401k account that is for your benefit.
3. If Millennium Trust have any questions regarding the transfer request, you should conference your solo 401k plan provider since they don’t have access to your IRA account.
In-Kind Transfer QUESTION
My IRA at Millennium Trust Company holds alternative investments (Prosper & Fundrise). Can these assets be transferred to the solo 401k as well ?
Yes, both the IRA rules and the solo 401k rules allow for the ten in-kind transfer/direct rollover of alternative investments including crowd funding holdings held in self-directed IRAs.
By transferring the alternative investment assets in-kind from the self-directed IRA to the solo 401k plan, they won’t be liquidated and it will be a non-taxable transfer/direct rollover to the solo 401k. Millennium would issue assignments based on the transfer form instructions. You would then submit the assignments to Prosper and Fundrise to for them to update their records to list the solo 401k as the new investor.
