Solo 401k Loan balance included in form 5500 EZ

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

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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