Our support team will reach out to process your cancellation.
Please read the below message in full and reply to confirm that funds/assets/investments have been rolled out of your Solo 401k.
- Maintain, and be prepared to provide to the IRS when requested, a listing of the name, current business address, and Federal Employer Identification Number of each employer that has adopted the Sponsor’s plan; and
- Notify adopting employers of changes to the pre-approved document during the preceding 12 months; of any intent to abandon the pre-approved document; or of necessary steps that are required to be taken to continue to rely on the opinion or advisory letter.
Your plan will be cancelled with Nabers Group, which means the plan will be marked inactive in our records.
As soon as the plan is cancelled, you no longer have permission to use our Solo 401k documents and you are not covered under our IRS Opinion Letter. You will no longer receive IRS-required amendments or restatements.
Because we are the document provider, the IRS considers our records to contain the official status of your plan, and we will mark your plan INACTIVE.
If there are any funds in an inactive plan, the money must be transferred to another active plan or the the IRS may consider monies to be distributed to the plan holder. If the funds are considered to be distributed, the IRS will require that you include the total Solo 401(k) balance on your personal tax return as taxable income.
The set-up and funding of your Solo 401(k) follows this sequential process:
- Create and activate the 401(k) plan
- Roll funds IN to the plan
When canceling and deactivating a plan, the same sequence should be followed in reverse, which is then:
- Roll funds OUT of the plan you are deactivating
- Cancel/deactivate/dissolve the 401(k) plan.
Please be ready to confirm there are no funds or assets in your Solo 401k plan. This is required to finalize your cancellation.