As year-end is approaching, please note the following important upcoming deadlines:
Plan owners must formally elect to make contributions before December 31st. Depending on your business type, you may also be required to make employee elective deferral contributions before December 31st. We’ve put together a summary for you that answers common questions about contributions. In order to review this information, click on the link below:
If there is a distribution or a Roth conversion within your Solo 401k plan in 2022, Form 1099-R will need to be issued from your Solo 401k by January 31, 2023. Distributions and Roth conversions are taxable events and need to be reported to the IRS. You can find Form 1099-R on the client portal:
Sense Financial can assist with creating 1099-R forms. If you would like us to help create this form for your plan, please let us know by Monday, January 9, 2023.
We will need a copy of a completed In-Plan Roth conversion form and/or the completed Distribution form in order to prepare your 1099-R. These forms can be located at the link above. Send your documents to firstname.lastname@example.org no later than January 9th.
Deadline to receive Required Minimum Distribution (RMD):
Plan participants who turned 72 years old in 2022 are required to take their first required minimum distribution (RMD) before April 1, 2023.
To determine the amount of distribution you must take, please click on the RMD calculator below:
As the plan administrator it is your responsibility to withhold the taxes and report the distribution, learn more here:
As the document sponsor of your Qualified Plan, we are preparing to submit our annual report to the IRS. The report will list all 401k plan sponsors using our documents.
If there has been any changes in your situation (e.g. change in the business type, address, addition of employees, etc.) please let us know by Monday, December 20th. Our goal is to provide you with the help and guidance needed to keep your plan in compliance. If you have any question, please don't hesitate to let us know.