When it comes to rolling over retirement funds to a Solo 401(k) Plan, generally one can fund the plan via a rollover or a Solo 401(k) Plan contribution. The Solo 401(k) Plan rollover can be accomplished either in cash or in-kind and can be done as a direct or indirect rollover. A direct rollover is accomplished by rolling over existing retirement funds from a current IRA or 401(k) Plan to the new Solo 401(k) Plan. An indirect rollover is accomplished by the funds moving to the individual IRA holder or plan participant before the funds are in turn rolled into the new Solo 401(k) Plan. Note – an indirect rollover can only be done once every 12 months, however, a direct rollover can done anytime and ad many times as necessary. Also, when completing an indirect rollover, the rollover can be done using cash or in-kind assets, such as stocks, gold, or real estate. However, it is important to remember that if cash is received as part of the indirect rollover, then cash must be deposited into a retirement account within 60 days of receiving the rollover check. The same goes with in-kind assets, if precious metals are received in the case of an indirect rollover, then the asset that was rolled over, in this case the precious metals, must be deposited into a retirement account within 60 days of receipt.
To learn more about how to accomplish a direct or indirect rollover to a self-directed IRA or Solo 401(k) Plan, please contact a tax professional at 800-472-0646.