Ready for potential IRS audit

The IRS may choose to audit your Solo 401k plan, at random. Are you prepared?

Remember that you are the plan administrator of your Solo 401k:

Your role as Solo 401k plan administrator

In an IRS audit, you may be asked for the following documentation. You are responsible for these as plan administrator:

Having signed Solo 401k plan documents in your file

This includes all past versions of your plan documents, including:

• Adoption Agreement
• Basic Plan Document
• IRS Opinion Letter
• Summary Plan Description

Keeping records of all plan activities, including investments and distributions from your Solo 401k

• Investment documentation should reflect ownership by your Solo 401k and investment value, including brokerage/bank statements, etc.
• If distributions were taken, documentation would include proof of payment, e.g. a copy of a cancelled check
• If required minimum distributions (RMDs) were taken, this would include proof of payment and explanation of how the amount was determined

Filing on behalf of your plan as needed, including 1099-Rs and 5500-EZs

Copies of past filings should be in your file.