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Trouble w/ transferring SEP IRA to SOLO-401K
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1 Reply
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My Nonprototype Solo-401K is up and running at Fidelity. I have a SEP IRA (stopped contributing last year) that was in a managed account at LPL Financial. I sent them the TOA form you guys helped me with, but they denied it. Apparently they believed it to be some sort of attempt at fraud. My former advisor told me that the easiest way to rollover the assets would be to have Fidelity reach out to LPL directly – in other words use Fidelity’s online TOA forms and go through it that way. Would that be ok, or is there common problems with that? Anyone have this problem before? Should I keep harassing LPL until they send me the check I asked for?
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You can certainly try to use Fidelity’s form if the SEP IRA custodian is not understanding the rules surrounding the required form to transfer an IRA including a SEP IRA to a 401k including a solo 401k. Essentially, a signed letter of acceptance is required from the trustee of the solo 401k which is the business owner not Fidelity. Please e-mail us if you would like assitance in using Fidelity’s form.
Another option if the current SEP IRA custodian is still not well versed on the transfer rules, is to do a workaround whereby you open an IRA at Fidelity and have work with Fidelity in transferring the SEP IRA to the new Fidelity IRA. Subsequently the Fidelity IRA would get transferred in-kind to the solo 401k brokerage account. Please reach out to us for assistance.
