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Transferring assets out of Solo401K to a Self Directed IRA
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A triggering event is required before any Solo 401k assets, cash or the limited partner investment, can be transferred to an SDIRA. The triggering events are reaching age 59½, death, disability, or no longer being self-employed (plan termination). Employer profit-sharing funds can also be transferred once they have been in the plan for 2 years or you have participated in the plan for 5 years.
The exception is funds previously rolled over into the Solo 401k from an IRA or a former employer plan, and voluntary after-tax contributions not yet converted to Roth. Those can be transferred at any time, at any age.
See the rules here: https://www.mysolo401k.net/making-solo-401k-distributions/
Once a triggering event is met or an exception applies, the form you found is the correct form for pretax funds. It does not start the transfer. You move the assets first, then submit the form so we have the total value transferred to issue the Form 1099-R.
For cash, follow this procedure to move the funds to the IRA: https://www.mysolo401k.net/solo-401k/depositing-the-full-pretax-solo-401k-funds-to-the-pretax-ira/
For the limited partner investment, the transfer is in-kind. Follow this procedure: https://www.mysolo401k.net/solo-401k/full-in-kind-transfer-of-solo-401k-owned-private-fund-or-syndication-investment-to-a-self-directed-ira/ The in-kind transfer form comes from the receiving SDIRA custodian. Your SDIRA must permit private fund investments.
After both transfers are complete, submit our form for the total value transferred: https://www.mysolo401k.net/solo-401k/full-transfer-of-pretax-solo-401k-to-pretax-ira/
If the plan also holds Roth funds, those move to a Roth IRA and use this form instead: https://www.mysolo401k.net/solo-401k/full-transfer-of-roth-solo-401k-funds-to-roth-ira/
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