Rolling over and transferring funds out of your Solo 401k is a multi-step process. As you are the Plan Administrator and Custodian of your Solo 401k, you're responsible for ensuring forms are completed accurately and on time, so we strongly recommend working with a good CPA when rolling funds out of the Solo 401k.
The general steps are below:
Fill out the Distribution form found in your Solo 401k plan documents. You'll find this in your Solo 401k dashboard under "Forms":
If you are keeping your Solo 401k plan active, please complete the In-service distribution form. If you are terminating your Solo 401k plan, please complete the Distribution form.
Once you've completed the [In-service or normal] Distribution form, sign and date and file in a safe space. You do not need to send this form to Nabers Group. As the Plan Administrator, you keep the official documentation for the plan. We also recommend that you share this with your CPA.
Once the form is complete, you can initiate movement of funds from the Solo 401k to the other retirement account by writing a check or sending a wire to the new account from the bank/brokerage account you have for your Solo 401k.
For all rollovers done in one calendar year, you'll generate a 1099 (for each Rollover) in January of the follow year. For example, if you do one rollover in 2023, you and your CPA will generate one 1099-R in January 2024. You can share this article on generating a 1099-R with your CPA.
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.
Optional: if you're rolling all of the funds out of your Solo 401k and canceling your plan, notify Nabers Group by sending an email to [email protected] so that we can assist in closing out your Solo 401k.