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Solo 401k and personal taxes

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Can you provide guidance on what I'm required to do on the tax/CPA side of things? What should I submit to my accountant for the plan?

IMPORTANT: Note that we are not qualified to provide tax, legal or investment advice. This information is intended as general guidance only. You should always consult with an experienced tax professional regarding your personal tax situation.

Form 5500-EZ

You may or may not need to submit Form 5500-EZ on behalf of your Solo 401k. You, as plan administrator of your Solo 401k, are responsible for this filing.

More information on Form 5500-EZ can be found at:

Form 5500-EZ Instructions

Contributions made to the plan

For your personal taxes, you will need to report contributions made to the plan:

  • Employee elective deferral contributions are reported on the first page of your personal tax return (Form 1040). Remember:  if your plan is sponsored by a corporation, you need to process contributions through the payroll. All contributions will need to be reflected on the paycheck as well as on Form W2.
Contributions from my corporation
  • Employer profit sharing contributions are reported on the corporate tax return. If your plan is sponsored by a sole proprietorship or single-member LLC, this contribution needs to be reported on your Schedule C.

Form 1099-R

Other things that would affect your personal taxes are:

  • Roth conversion
  • Distribution
  • Defaulted loan*

* The Solo 401k loan is in default when the cure period has passed. The loan is then considered as a distribution and is taxable and reportable as income.

All of the above are taxable events. If you perform any of the above, you will need to report it through Form 1099-R. As plan administrator of your Solo 401k, you are responsible for filing Form 1099-R on behalf of your plan.

Form 1099-R Instructions

Recordkeeping for the Solo 401k

As plan administrator of your Solo 401k, it is your responsibility to maintain the recordkeeping of the plan. This includes the contributions, distributions, investments, etc. All recordkeeping forms are located under the Maintenance tab within “Miscellaneous Forms.”

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