Please check out this good question from our Daily Live Zoom call. Subscribe to our YouTube Channel to get notifications of our Daily FAQs.
SOLO 401K FAQ: Do I need to submit a tax return for my Solo 401k Employer Identification Number (EIN)?
QUESTION:
Do you need to submit a tax return for this new 401k EIN number?
RESPONSE:
No. The mere fact that the EIN is obtained for the Solo 401(k), which is the IRS expectation, will not require that a tax return be automatically filed for the Solo 401k.
An informational return would need to be filed for the solo 401(k) (i.e. Form 5500-EZ) but only once the value of the plan exceeds $250,000.
We prepare Form 5500-EZ for filing under the electronic filing service as an optional free service for our clients (clients just have to let us know when the value exceeds $250,000 since we don’t have access to any of our customers’ accounts).
