The distributing Solo 401k or Self-Directed 401k may process the direct rollover/transfer to another Solo 401k or Individual K plan in any one or combination of the following methods in accordance with Treas. Reg. 1.401(a)(31)-1, A-3.
1. Issue check directly to the Solo 401k or Individual 401k plan that is receiving the rollover.
EXAMPLE: Jane Do Solo 401k Trust, f/b/o Jane Do, Trustee
2. A wire transfer of the funds to the eligible Solo 401k or Self-Directed 401k that is receiving the rollover.
EXAMPLE: Wiring instructions are submitted to releasing Solo 401k/Individual 401k custodian by new bank or brokerage firm holding new Solo 401k/Individual 401k and funds as subsequently wired.
3. Issue a check to the participant/trustee that is made payable to the eligible Solo 401k or Individual 401k plan that is receiving the rollover.
EXAMPLE: John Do Solo 401k Trust, f/b/o Jane Do, Trustee
The only difference here is that the check is mailed directly to the Solo 401k or Individual 401k trustee.
4. Transfer/Direct Rollover of Noncash Assets: To the extent the direct rollover is in the form of noncash assets, title to the property would be directly transferred to the eligible Solo 401k or Individual 401k plan that is receiving the rollover, and the noncash assets would be mailed to the Trustee of the Solo 401k or Individual 401k.
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