Rollover Funds Out of the Solo 401k to Another Retirement Plan

If you are rolling funds out of your Solo 401k plan, you still need to complete and file IRS form 1099-R. The PAYER is the Solo 401k trust. Enter the Solo 401k trust name, Solo 401k trust EIN, and Solo 401k trust address.

The RECIPIENT information varies, depending on where funds will end up. If you are rolling funds out of the Solo 401k and into an IRA, you’ll enter your information (name, SSN, and address) as the recipient. If you are rolling funds out of the Solo 401k and into another qualified retirement plan, you’ll enter the new 401k plan/trust information as the recipient.

Typically when you are rolling funds out of a Solo 401k plan, they will go directly into another retirement plan. This is known as a direct rollover, or trustee-to-trustee transfer. This type of distribution is generally not taxable. Enter Distribution code G in box 7 to denote a direct rollover to another retirement plan.

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