Year End Reminders for IRA LLC &
Solo 401(k) Clients

By Jordan Sheppherd

IRA LLC Clients
You’ll be receiving a year-end valuation letter from your IRA Custodian asking you to list the value of the IRA LLC. These forms don’t require a list of the LLC’s holdings, but rather just a dollar amount of the total asset value of the LLC. This would include everything the LLC owns, including cash it may have in its bank account(s). The due date for this form depends on your Custodian, but typically it’s going to be no earlier than January 15th.

If you are over 70 1/2 and your IRA is not a Roth IRA, the Custodian may require that you get a valuation of the LLC from a third party. There are any number of professionals that provide valuation services, including CPAs. We can recommend They know what they’re doing, and they deal almost exclusively with IRA and 401(k) related valuations.

Solo 401(k) Clients
For clients with a Solo 401(k) here is a list of things to keep in mind for the end of 2017:

  • Solo 401(k)s have a $250,000 threshold reporting requirement, so be aware that if your Solo 401(k) was worth more than $250,000 at any time during the course of 2017, you’ll need to file a Form 5500-EZ. This form isn’t due until July 31, 2018, but if you meet that threshold, keep it in the back of your mind that you’ll need to file that form next year.
  • Make sure you haven’t, or don’t, over-contribute to the plan. Here’s a handy dandy contributions calculator for Solo 401(k)s, where you can get an idea of how much you qualify to contribute, based on your earned income.
  • If your business is a C-Corp or an S-Corp, remember that your employee deferral must be made and deposited into the plan by December 31. Also remember that in order to make a contribution at the end of the year, you’ll have to ensure that the Corp has paid you enough during that pay period to cover the contribution.
    • If you are a Sole Proprietor, have an LLC or Partnership that is not taxed as an S-Corp, you don’t have to worry about any of the aforementioned pay period stuff; you’ll have until the filing date of your company to make both your employee and profit sharing deferrals.

We hope everyone has had as good a 2017 as we have, and wish everyone an early happy holiday season.


Contact Us

    Name *

    Email *

    Phone *

    How can we help? *