Rollover IRA -> Solo 401k Transfer?

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Topic Author
RobFaustus
Posts: 2
Joined: Thu Apr 01, 2021 4:48 pm

Rollover IRA -> Solo 401k Transfer?

Post by RobFaustus »

My wife has a rollover IRA (in Vanguard) from a previous employer that was bought out and then kicked folks off their 401k plan. I've gone ahead and added her as a spouse on my solo 401k plan (in Fidelity).

I've been trying to transfer her IRA into the solo 401k but I've been told that because I'm the plan administrator, I need to send the transfer of assets documentation over to Vanguard along with a Letter of Acceptance (LOA).

Has anyone done this before? Are there templates available of an LOA that I should use? Or is it easier to fill out a distribution form to Vanguard asking for a check made out to Fidelity FBO <name> and then send that to Fidelity with the transfer of assets form?
HomeStretch
Posts: 6041
Joined: Thu Dec 27, 2018 3:06 pm

Re: Rollover IRA -> Solo 401k Transfer?

Post by HomeStretch »

A couple years ago, a Fidelity rep told me it was easier if the Vanguard IRA was first transferred to a Fidelity IRA and then rolled over to the Fidelity Solo 401k. The two-step process worked well and was completed in a a couple weeks.
Topic Author
RobFaustus
Posts: 2
Joined: Thu Apr 01, 2021 4:48 pm

Re: Rollover IRA -> Solo 401k Transfer?

Post by RobFaustus »

Did you still need a letter of acceptance as the plan administrator?
HomeStretch
Posts: 6041
Joined: Thu Dec 27, 2018 3:06 pm

Re: Rollover IRA -> Solo 401k Transfer?

Post by HomeStretch »

RobFaustus wrote: Wed Apr 07, 2021 11:39 am Did you still need a letter of acceptance as the plan administrator?
No.

1. At Fidelity online I opened a new tIRA and initiated the ‘account transfer’, which was a direct transfer of the Vanguard tIRA to the new Fidelity tIRA. I had to scan and upload a recent Vanguard statement.

2. After the funds were received in the Fidelity tIRA, I completed a “One-Time Withdrawal - IRA” Fidelity form the small business retirement plan rep sent me and told me how to complete. I can’t recall if I sent a scan of the completed form back to the rep or dropped it off at the local office.

If you decide to go with the two-step process, Fidelity should be able to provide the form and help you complete it in order to rollover the Fidelity tIRA to the Fidelity Solo 401k.
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