ForumsSolo 401k – 5500-EZ5500-EZ Questionnaire

Forums Solo 401k Solo 401k – 5500-EZ 5500-EZ Questionnaire

  • 5500-EZ Questionnaire

    Jon P. replied 1 year, 8 months ago 2 Members · 3 Posts
  • 2 Replies
  • Top SubjectPrivate: My Community Webinars,Solo 401k – 5500-EZ
    Top ForumsPrivate: My Community Webinars, Solo 401k – 5500-EZ

    Jon P.
    Top SubjectPrivate: My Community Webinars,Solo 401k – 5500-EZ

    July 7, 2022 at 2:39 pm

    I am working on the questionnaire for the 5500-EZ. Question 11 of 15 asks about non-recourse debt.

    Within our solo 401k plan we have invested in three multi family real estate syndications as limited partners. I received the annual K-1 from each syndication. Here is an example from section K Partner’s share of liabilities of part 1 from one of them:

    Nonrecourse (ending balance) $788

    Qualified nonrecourse financing (ending balance) $89,849

    On the 5500-EZ questionnaire, do we include the nonrecourse debt from these syndications that we have invested in as limited partners?

    Presuming the answer to the above question is yes, do I include the total of the two amounts from my example above ($90,637) for the year end balance on the questionnaire? Or do I just include one of the individual amounts?

    Jon P.
  • George Blower

    Top SubjectDaily Live Webinar,Solo 401k
    Top ForumsDaily Live Webinar, Solo 401k

    George Blower

    George Blower

    Top SubjectDaily Live Webinar,Solo 401k

    July 8, 2022 at 9:33 am

    Thanks for your question!

    The Form 5500-EZ instructions require that plan liabilities be listed including acquisition indebtedness. For example, if the plan acquired a real estate investment property using a non-recourse loan such that the plan is liable for the loan such indebted would be listed on Form 5500-EZ.

    In the case of an investment in a real estate syndication that may be subject to nonrecourse financing but where the plan is not liable for such debt, the nonrecourse financing does not need to be listed on Form 5500-EZ such that this can be disregarded when completing the Form 5500-EZ questionnaire.

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