Next, you will need to contact Vanguard and request that they transfer your Vanguard Individual 401k to your new Solo 401k. This usually has to be done through a letter explaining the process in addition to the submission of transfer-out forms. To make the transfer out process easier, you may want to include the following language in your letter of instruction to Vanguard when you are ready to process the transfer of your Vanguard Individual 401k to a Self-Directed Solo 401k with checkbook control:
From: Jane Doe
Re: Transfer ABC Corp. Individual 401k
To Whom It May Concern:
Effective (enter date), I, Jane Doe of the ABC Corp. Individual 401k have restated the:
ABC Corp. Individual 401k to the ABC Corp. SOLO 401K.
Please find enclosed executed 4 page Solo 401k Adoption Agreement for the ABC Corp. SOLO 401K confirming change in 401k Sponsor/Provider.
Accordingly, I, Jane Doe wish to stop using Vanguard’s 401k services. Therefore, please process the enclosed trustee-to-trustee transfer forms. Two sets of executed transfer forms are enclosed—one for each participant (Jane Doe and John Doe).
By way of background, pursuant to 401k regulations, self employed individuals as Jane Doe and John Doe are, can serve as trustees of their 401k. The option of the business owner(s) option to serve in trustee capacity of their Solo 401k may be confirmed by visiting following IRS website link: