1099-INT reporting earned interest on Solo 401k bank account

I received Form 1099-INT interest earned statement from my bank (Wells Fargo). Does the interest earned need to be reported on my tax return?

If yes, TurboTax will automatically apply taxes on it. Since the bank account is for a 401K, I believe income tax should not be applicable on it. Can you help?

Answer:

Assuming that you set up your 401k bank account correctly, the interest statement (1099-INT) should be issued to the Solo 401k Trust, not to you personally. The Solo 401k Trust EIN should be printed on the form, not your Social Security Number. You do not include this on your personal tax return since you personally didn't earn it, your Solo 401k Trust did. And since the 401k Trust is a tax-exempt entity, the interest will not be taxable and you will not need to report it.