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Hi all,
Maybe someone else has posted this already, but I didn't see anything. Big news for us though! As of the first week of April 2021, Vanguard is now allowing Solo 401ks held at Vanguard to receive rollovers from other 401ks.
No longer do we have to turn to Etrade of Fidelity!
I have begun the process with one of our solo 401ks at Vanguard and initiated the rollover at the other institution. I did have to speak with a small business specialist at Vanguard who walked me through updating the plan documents so that the plan is compliant with this new functionality. Once the documents are all processed (5-7 days) the plan will accept the rollover from my previous employer. I was told to go ahead an initiate the rollover from the other institution to the get the physical check on the way.
Here is the information provided directly from Vanguard:
I'll report back here when the dust settles to confirm that all came off without a hitch.
-aaron239
Maybe someone else has posted this already, but I didn't see anything. Big news for us though! As of the first week of April 2021, Vanguard is now allowing Solo 401ks held at Vanguard to receive rollovers from other 401ks.
No longer do we have to turn to Etrade of Fidelity!
I have begun the process with one of our solo 401ks at Vanguard and initiated the rollover at the other institution. I did have to speak with a small business specialist at Vanguard who walked me through updating the plan documents so that the plan is compliant with this new functionality. Once the documents are all processed (5-7 days) the plan will accept the rollover from my previous employer. I was told to go ahead an initiate the rollover from the other institution to the get the physical check on the way.
Here is the information provided directly from Vanguard:
401k Rollover-Vanguard-(Associates Name)
Dear (Mr. aaron239):
Thank you for your interest in rolling plan assets to Vanguard.
The letter of instruction must include the following information:
- Participant Name and Plan ID/Account Number
- Plan Type the pre-tax rollover contribution is coming from (i.e. Qualified Plan or IRA)
- The dollar amount of the pre-tax rollover contribution
- Vanguard Fund(s) to deposit the Rollover contribution (include percentage or dollars)
- A written statement confirming the following:
+ The rollover is an eligible rollover distribution from a traditional, Rollover, SEP or SIMPLE IRA or from a qualified plan, a 403(b) plan, or governmental 457(b) plan;
+ The rollover amount consists of only pre-tax money and earnings and doesn’t include any after-tax, non-deductible, or Roth amounts; and,
+The rollover is either a direct rollover or an indirect rollover within 60 days rollover deadline.
- Your signature as the participant/plan administrator
- Signature of plan administrator, if you’re not the administrator.
Many rollovers can be initiated with a phone call to the other custodian, and often without any paperwork. Please have the custodian make the check payable to "VFTC FBO ‘Participants name.’” Note: Please ask the custodian to put your Vanguard account number on the check.
To forward your check along with your letter of instruction to Vanguard, please use this address:
For first-class mail:
Vanguard
P.O. Box 982901
El Paso, TX 79998-2901
For registered, certified, or overnight mail:
Vanguard
5951 Luckett Court, Suite A1
El Paso, TX 79932
If your retirement plan requires paperwork from us, please call me for assistance.
Dear (Mr. aaron239):
Thank you for your interest in rolling plan assets to Vanguard.
The letter of instruction must include the following information:
- Participant Name and Plan ID/Account Number
- Plan Type the pre-tax rollover contribution is coming from (i.e. Qualified Plan or IRA)
- The dollar amount of the pre-tax rollover contribution
- Vanguard Fund(s) to deposit the Rollover contribution (include percentage or dollars)
- A written statement confirming the following:
+ The rollover is an eligible rollover distribution from a traditional, Rollover, SEP or SIMPLE IRA or from a qualified plan, a 403(b) plan, or governmental 457(b) plan;
+ The rollover amount consists of only pre-tax money and earnings and doesn’t include any after-tax, non-deductible, or Roth amounts; and,
+The rollover is either a direct rollover or an indirect rollover within 60 days rollover deadline.
- Your signature as the participant/plan administrator
- Signature of plan administrator, if you’re not the administrator.
Many rollovers can be initiated with a phone call to the other custodian, and often without any paperwork. Please have the custodian make the check payable to "VFTC FBO ‘Participants name.’” Note: Please ask the custodian to put your Vanguard account number on the check.
To forward your check along with your letter of instruction to Vanguard, please use this address:
For first-class mail:
Vanguard
P.O. Box 982901
El Paso, TX 79998-2901
For registered, certified, or overnight mail:
Vanguard
5951 Luckett Court, Suite A1
El Paso, TX 79932
If your retirement plan requires paperwork from us, please call me for assistance.
I'll report back here when the dust settles to confirm that all came off without a hitch.
-aaron239
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