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Self-Directed 401k FAQ – Do I need to report interest earned on my Solo 401k account?
QUESTION:
Because Savings Interest Rates are up around 5% this year. I would like to know what I need to do – or not do – around reporting them for my solo 401k?
RESPONSE:
Solo 401k account is tax-deferred until distributions commence. Therefore, there is no need to report the interest earned on savings within a Solo 401k account on your tax return until you take a distribution.
