QUESTION 1: In order to see if I need to file form 5500 ez, is it $250,000 for entire Solo401k trust net assets (all accounts combined) or per account?
ANSWER: The form 5500ez filing requirement applies to both solo 401k participants’ individual accounts. Therefore, since both spouses are participating in the same solo 401k plan, both spouses participant accounts will need to be added together to determine if the total balance of the solo 401k plan exceed $250,000 as of the end of the year; if yes, then a form 5500ez will need to be filed by July 31 of the following year.
QUESTION 2: If there is a solo 401k loan balance then do I have to include the loan balance also to see if the amount exceeds $250000?
ANSWER: Good question and the answer is yes the outstanding solo 401k loan balance is required to be added to the asset value, which may result in exceeding the $250,000 threshold amount and, thus, require the filing of a form 5500ez. You can learn more about the solo 401k loan effect on form 5500ez reporting by clicking here and referring to section Part III – Financial Information (Lines 7a-8c)
I appreciate it, Laurie in Iowa