Recent Regulations

IRS Revenue Procedure for Late 60-Day Rollover:

On Wednesday, August 24, 2016, the IRS released Revenue Procedure 2016-47.

This procedure allows you to complete a late 60-day rollover of retirement funds including solo 401k plan and IRA funds using a self-certification.More.

IRS Finalizes Rules for Allocating Pretax Amounts Disbursed from Roth Solo 401k(k)s:

On May 18, 2016 the IRS issued final regulations on how pretax amounts must be allocated when distributions are taken from Roth Solo 401(k)s.

[TD 9769] These regulations finalize the details on the taxation of various transactions when a solo 401k participant takes a distribution from their Solo Roth 401(k) that contains both pre-tax and after-tax funds.  More.

IRS Notice 2014-54 Authorizes Tax-Free Roth Conversions of After-Tax Plan Funds:

On September 18, 2014, the IRS published IRS Notice 2014-54, Guidance on Allocation of After-Tax Amounts to Rollovers.

The IRS explains in this notice how taxation applies when a retirement plan participant takes both pre-tax and after-tax funds (this is not referring to Roth 401k funds but rather after- tax contributions where the earnings grow tax deferred) from his or her retirement plan.  More.

New IRS Penalty Relief Program for  Form 5500-EZ Late Filers:

Later filers of Form 5500-EZ have been granted automatic relief from IRS late filing penalties applicable under 6652(e) and 6692 of the Internal Revenue Code for failing to timely comply with the annul reporting requirements found under 6047(e), 6058, and 6059 of the Internal Revenue Code, which apply to self-employed plans such as solo 401k plans and individual 401k plans.  More.

New Once-Per-Year Rollover Rules:

While the once-per-year rollover rules have changed resulting from Internal Revenue Service (IRS) Announcement 2014-15 (listed below) and released on March 20, 2014, the new rules don’t necessarily apply to rollovers from IRAs to 401k plans including solo 401k plans. More.

New IRS Rules for Hard-To Value Assets

Valuation of hard-to-value assets held inside self-directed IRAs and Self-Directed  401k plans including Solo 401k plan are being looked at more closely by the IRS. As a result, at the end of 2013 the Internal Revenue Service announced new reporting requirements directed at IRA and solo 401k investments not having a readily available fair market value. The new rules apply to IRS Form 5498, IRA Contribution Information, and Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.  More.

IRS Announces Higher Expectations for Solo 401k Loans:

On September 4, 2014 a couple of members of the Voluntary Compliance Group of the Internal Revenue Service (IRS) provided a webinar regarding correcting common retirement plan mistakes using the IRS correction programs.  More.

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