There are certain times when you may need to take a distribution from a Solo 401k.

Please note, these instructions are specific to an early or normal distribution only. If you are rolling funds out to another retirement plan, doing an in-plan Roth conversion, taking an in-service distribution, or taking a participant loan, the procedure is different.

These articles will help with those specific topics:

When you're rolling funds out of the Solo 401k the basic process is:

  • Determine how much you're rolling out of the plan

  • Fill out the form "NAB Distribution Form" in your Solo 401k plan documents

  • Move the funds from your Solo 401k account to the new retirement account via check/ACH/wire, etc.

  • In January of the following calendar year you and your CPA/tax advisor will generate a 1099-R documenting the rollover

Please note all distributions from a (traditional) 401k plan are taxable. If you are distributing funds before you reach age 59.5, you will incur an additional 10% early withdrawal penalty.

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