QUESTION: Can you tell me what kind of reporting I might have to do at year-end on the existence and value of my Solo 401k, either as an individual or reporting my sole-member LLC for which my Solo 401k is the only member?
By the way, everything has been going great so far…
ANSWER: Because you transferred your Self-Directed IRA LLC from the prior custodian to your new Solo 401k plan, the self-directed IRA custodian will issue Form 1099-R and report the in-kind transfer of your Self-Directed IRA LLC to your new Solo 401k as a direct rollover using code “G” and will mail copy to you in January and to the IRS by March. As such, with respect to year-end Solo 401k reporting, this is the only reporting with respect to the IRS or any other Solo 401k regulator provided you haven’t processed any distributions from your Solo 401k plan.
However, annual informational reporting Form 5500-EZ will need to be filed with the IRS by July 30 of next year if the total fair market value of your Solo 401k was $250,000 or more as of 12/31. We send our clients an e-mail at the beginning of each July to remind them of the required Form 5500 EZ filing and ask a few questions before we prepare and file Form 5500 EZ with the IRS which is included in our annual Solo 401k fee.