ForumsPrivate Company/Private PlacementsTransfer Private Placements

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  • Transfer Private Placements

    1 Reply
  • Eric Johns

    Top SubjectPrivate Company/Private Placements,Solo 401k Contributions
    Top ForumsPrivate Company/Private Placements, Solo 401k Contributions

    Eric Johns

    Eric Johns

    Top SubjectPrivate Company/Private Placements,Solo 401k Contributions

    February 1, 2022 at 3:25 pm

    How do I transfer a private placement associated with an existing IRA? Can I rollover the entire account or is separate paperwork required?

  • Mark Nolan

    Top SubjectSolo 401k,Solo 401k Contributions
    Top ForumsSolo 401k, Solo 401k Contributions

    Mark Nolan

    Mark Nolan

    Top SubjectSolo 401k,Solo 401k Contributions

    February 5, 2022 at 7:11 am

    A private placement is considered an alternative investment asset of a pretax IRA and may be directly rolled over to an eligible retirement plan such as a 401k including a self-directed solo 401k.

    If an asset such as a private placement or real estate, for example, the IRA custodian will assign the investment to the new 401k including the solo 401k by preparing a paper assignment.

    In order to prepare the document to assign the asset in-kind to the solo 401k, the IRA custodian will require written instructions. Some IRA custodians will require their IRA transfer-out form completed; others will require a letter of acceptance, which the solo 401k plan provider prepares, and some will require both their transfer-out form and a letter of acceptance.

    The 60-day rollover rule does not apply.
    The IRA custodian does not perform any tax withholding because there is no taxable distribution.

    For more information regarding the direct-rollover rules, VISIT HERE.

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