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SOLO 401k FAQ: Is the Form 5500-ez $250k limit per account or do you have to combine all the 401k accounts together?
QUESTION:
Is the Form 5500-ez $250k limit per account or do you have to combine all the 401k accounts together?
RESPONSE:
The $250,000 limit for Form 5500-EZ filing requirement is not per account, but rather it applies to the total plan assets for all participants under the solo 401k plan. This means that if you participate in multiple solo 401k plans, all the plan assets must be aggregated to determine if the $250,000 threshold has been met. Also, if you have multiple participants in the solo 401k plan (e.g., you and your spouse or business partners) as well as multiple sources of solo 401k funds (e.g., Roth & Pretax funds) then those sources also have to be aggregated to determine if the solo 401k plan is $250,000 or more.
