Transfer or Rollover Former Employer 401k to Solo 401k or Self-Directed Solo 401k

When you are ready to transfer your old/former employer 401k to a solo 401k or self-direted solo 401k with checkbook control, read this blog as it explains the process and contains procedures for transferring 401k to solo 401k conveniently and properly. Of course, you first need to open solo 401k with a provider that allows for investing in alternative investments such as real estate and precious metals.

Procedure and End-Result of Transferring Former Employer 401k to Solo 401k With Checkbook Control 

Transfer/Rollover Form

Most likely your former employer requires their transfer out forms for rolling transferring 401k to solo 401k. However, your new solo 401k provider can also supply transfer/rollover form if necessary.

Completing Transfer/Rollover Form

Be sure to fill out form properly to prevent tax withholding and/or penalties. Therefore, select "transfer" or "Direct Rollover" option on form.
By Check: Under payment instructions, elect to have check made payable to your solo 401k not just your name. For example, check would be made payable to "ABC Solo 401k, Jeff Doe, Trustee"

By Wire: Alternatively, you can have funds wired to Solo 401k checking account after you open solo 401k checking account for solo 401k at your local bank or brokerage firm.

1099-R Reporting by Releasing 401k Institution
The transfer/direct rollover from 401k is not taxable but reportable on Form 1099-R. To report transfer/rollover to IRS, the releasing custodian will tax report using code "G" in box 7.

Form 1040 Reporting
Make sure to report the direct rollover/transfer of former employer 401k plan to solo 401k when you file your annual tax return the following April or, if you file extension, by your tax return due date plus extensions.