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How to Distribute Funds OUT of a Solo 401k
How to Distribute Funds OUT of a Solo 401k

Ready to move funds out of your Solo 401k plan? Follow the helpful guide on rolling funds out of your trust.

Updated over a week ago

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 distributing funds from the Solo 401k the basic process is:

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

  • Fill out the Distribution form found in the "Solo 401k forms" download in your Solo 401k dashboard. Share this with your CPA.

  • Move the funds from your Solo 401k account to your personal 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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