Transfer Private Placements1 Reply
Top ForumsPrivate Company/Private Placements, Solo 401k ContributionsFebruary 1, 2022 at 3:25 pm
Top ForumsSolo 401k, Solo 401k ContributionsFebruary 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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