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I have a Solo 401k at TD Ameritrade for retirement investing of side-hustle income. This plan comprises two accounts: a traditional (pre-tax) Solo 401k and a Roth Solo 401k. TD recently announced it will no longer support Roth Solo 401ks and so I need to do something with this account.

  • I'd like to rollover the Roth Solo 401k into my Roth IRA at Vanguard. Is this a straight-forward rollover? Do I need to file a 1099-R?
  • The Traditional Solo 401k account was never funded, so I can just close that account when I transfer out the Roth.

Note: this is not a "Backdoor Roth" or "Mega Backdoor Roth"; the money in question is already Roth and will remain Roth.

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You tell Vanguard you want to rollover Roth 401k into your Roth IRA, and they can tell you who the check should be made out to, what to write in the check memo, and where the check should be made out to. Then you tell your 401k provider to rollover all the Roth 401k money with the check made out in the provided format.

You will receive a 1099-R from your 401k provider. You do not need to attach a 1099 to your tax return unless it shows tax withheld. You will report the rollover by writing "rollover" on your tax return. You will also need to remember to include the Roth 401k contribution amount (which is also reported on your 1099-R) in your Roth IRA basis the next time you fill out form 8606 part 3 for a Roth IRA withdrawal.

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