What "in-kind" means
Instead of selling the asset and moving cash, the ownership document is re-registered from your previous plan to the new one. The asset itself doesn't move; only the title changes. For real estate, that means a new or amended deed. For a private placement, it means an updated subscription agreement or share certificate.
Securities are a special case
Stocks, ETFs, and similar securities can technically be transferred in-kind, but the process creates more work than it's worth in most cases. The securities would need to be re-titled from your current IRA to IRA Resources, and then from IRA Resources into a new brokerage account inside your LLC or trust. If you intend to keep holding those securities, it's simpler to leave them where they are. If your goal is to diversify into alternative assets, liquidate to cash and roll the proceeds into your self-directed IRA. Note that IRA Resources cannot accept in-kind transfers of mutual funds.
Moving alternative assets to an IRA
Real estate, private placements, cryptocurrency, and similar assets held in an existing retirement account can be transferred in-kind to your Self-Directed Plans IRA. To initiate the transfer, you'll complete IRA Resources' standard Transfer Request form. Depending on the asset type and your previous custodian's requirements, you may also need to provide a current fair market value. Custodians often charge per-asset transfer fees, so confirm costs on both sides before initiating. Note that IRA Resources cannot accept in-kind transfers of precious metals.
Moving alternative assets to a Solo 401(k)
For a Solo 401(k) in-kind rollover, you serve as both administrator and trustee of your own plan. The general steps:
- Obtain an updated ownership document (deed, note, or subscription agreement) listing your Solo 401(k) plan as the new title holder.
- Request the rollover from your current plan administrator or custodian. They may require a current valuation and a copy of the updated ownership document, or they may ask for a Letter of Acceptance from your Solo 401(k) plan.
- Your previous plan will issue a Form 1099-R reporting the non-taxable rollover event. Retain all rollover and re-title documentation with your plan records.
There is no IRS filing required from the Solo 401(k) side to confirm the rollover. You'll report the non-taxable rollover on your personal tax return.
Frequently Asked Questions
Can I transfer real estate held in my old IRA to my new self-directed IRA?
Yes. Real estate is one of the most common assets transferred in-kind. The deed must be re-registered from your previous custodian FBO your IRA to your new plan entity. Coordinate timing carefully; real estate transfers can take several weeks depending on county recording requirements and your previous custodian's process.
What does "re-registration" mean for an in-kind transfer?
Re-registration means changing the titled owner of the asset from your old plan to your new plan. The asset itself doesn't move; only the name on the ownership document changes. For real estate, that means a new or amended deed. For private placements, it means an updated subscription agreement or share certificate.
Will I owe taxes on an in-kind rollover?
No. A properly documented in-kind rollover is a non-taxable event. Your previous plan will issue a Form 1099-R coded as a rollover.
Does IRA Resources accept all asset types for in-kind transfers?
No. IRA Resources cannot accept in-kind transfers of precious metals or mutual funds. Real estate, private placements, cryptocurrency, and other alternative assets are generally acceptable, subject to review.
Is an in-kind rollover to a Solo 401(k) different from a transfer?
Yes. Solo 401(k) plans use rollovers (not transfers) when receiving assets from an IRA or former employer plan, because the Solo 401(k) is a different plan type. IRA-to-IRA movements use the transfer mechanism. See What is the difference between a Rollover and a Transfer? for the distinction between rollovers and transfers.