Annual Solo 401(k) Reporting
How does one do the annual reporting for a solo 401(k)? What type of reporting is required for the plan? Do you, as the plan administrator, file any type of tax return for the Solo (k)?
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No Reporting To: Custodian State Feds
The annual reporting for a solo 401(k) is minimal. If your plan, even if you have you and your spouse are in there, or you and two other owners- because, remember: you have to be an owner and an employee. You can have no employees that are not owners– but even if you have multiple parties in there, until the plan reaches $250,000, there is no reporting to the IRS whatsoever. But once it reaches $250,000, there is one form. We will do it for a fee. But it’s not hard to fill out, it’s called Form 5500, and basically it’s just telling the IRS, “Yes, everything’s the same. The company’s the same. The employers and employees are the same. The bank account’s the same. We haven’t changed our plan documents and yada, yada…” You know, it’s just a reporting, it’s not a big deal– and how much funds, how much is in there. Not what the plan is invested in– you don’t have to disclose that, just, you know, it’s very, very minimal. So the reporting for a solo 401(k) is awesome. If you don’t have an LLC, there’s no annual fee to pay to the state, there’s no reporting to be done there. You have no custodial to answer to. So in that case, reporting is very, very minimal for a solo 401(k).