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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.

Rachel Nabers avatar
Written by Rachel Nabers
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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