Transfer Promissory Note to Self-Directed Solo 401k

QUESTION: First off, thanks for all your help on creating my self-directed solo 401(k). I am very happy with the way things are going so far. I finally received my cash from Equity Trust and also three notes that I have outstanding. Equity Trust transferred those notes over to my Solo 401(k) but do I need to do anything else to complete the transfer or just file them away? Do I just file these away and everything is good? 

Also, since they came to me in 2013 do I need to file anything with the IRS showing a rollover of the assets?

Sincerely,

Ava O. Nevada

ANSWER: Make sure that the notes are each registered in the name of the solo 401k (i.e. the solo 401k is listed as the beneficiary/lender). You will need to sign as the trustee of the solo 401k and the borrower will also need to sign.

With respect to IRS reporting, if Equity Trust didn't process the direct rollover until this year it will not be reported on your personal tax return (Form 1040) until next year in lines 16a and 16b. Equity Trust will issue a Form 1099-R to report the full IRA direct rollover to your Solo 401k plan using code "G" in box 7 since the funds and assets were directly rolled over to the solo 401k plan. As such, when you receive the Form 1099-R from Equity Trust next January make sure code letter "G" is listed. Lastly, we will send you a reminder e-mail next January with clear instructions on how to report the direct rollover on your Form 1040.