I Received Form 1099-INT, Interest Income for My Solo 401k Investment


If I invest my Solo 401k in a company (LLC) that invests in real estate rentals us that has hundreds of other member investors, should the company NOT send me a 1099 INT tax form with the income reported at the end of the year because my Solo 401K Trust is a tax-exempt entity? ….or if they do send it, do I just ignore it because there is no filing requirement? I’m concerned that if the company issues me a 1099, I’m assuming they will also report to the IRS, but is the IRS able to somehow identify that the 1099 is for a tax-exempt entity so they don’t expect to see this income reported in my tax return?


Generally, your understanding is correct that the 1099 INT is for your records and you do not file it with the IRS because the solo 401k is a tax shelter vehicle; thus, the gains grow on a tax deferred basis until distributions commence, usually at retirement. Make sure the 1099-INT is issued in the name of the solo 401k and that the LLC sponsor uses the solo 401k EIN for reporting purposes.



About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>


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