Solo 401k Bank Account

Solo 401k Bank Account | Reporting IRA or SEP or SIMPLE IRA Rollover or Transfer to Solo 401k Bank Account

The Bank Plays Limited Role With Respect to Solo 401k Bank Account

I recently opened solo 401k bank account and established checking account for my Self-Directed Solo 401k at Bank of America, and subsequently transferred/rolled over my SEP IRA from Charles Schwab to my newly established Self-Directed Solo 401k checking account. Can you please clarify for my banker how to report the transfer of my SEP IRA to my newly established self-directed Solo 401k? Thank-you for your help.  

You and Solo 401k Provider Administer the Solo 401k Plan Not the Banker

Actually the bank has no roll in transferring the funds or reporting the SEP IRA transfer to your newly established Self-Directed Solo 401k with checkbook control. Instead, the bank’s only roll with respect to the Solo 401k is to provide bank account with checking account feature. All of the administration for the Solo 401k is handled by you in conjunction with your Solo401k provider. Regarding reporting the rollover, this will need to be done when you file your 1040 in the year following the SEP IRA transfer to your Solo 401k with checkbook control. For example, if you processed the SEP IRA transfer/rollover to your Solo 401k bank account in 2012, then you will report the rollover when you file your personal tax return, Form 1040 in 2013, usually by April 15 unless you filed a tax extension.

See below regarding how to report transfers from SEP IRA, SIMPLE IRA and Traditional IRA to Solo 401k bank account.

Reporting Rollover or Transfer of IRA, SEP IRA, and SIMPLE IRA to Solo 401k Bank Account on Tax Return-Form 1040 or 1040A

• Entire distribution goes on line 11a if you file Form 1040A, on line 15a if you use the long Form 1040.

• 0 goes in box 11b of Form 1040A or in line 15b if you file Form 1040 since you deposited funds in Solo 401k checking account. Remember to write "rollover" next to the amount.

• File applicable Form 1099-R, which will be issued by the releasing IRA, SEP IRA, or SIMPLE IRA releasing institution and mailed to you by January of year following the distribution, with your Form 1040.