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

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  • 5500

    4 Replies
  • Steven D. Kurland

    Top SubjectTransfers/Rollovers,Solo 401k
    Top ForumsTransfers/Rollovers, Solo 401k

    Steven D. Kurland

    Steven D. Kurland

    Top SubjectTransfers/Rollovers,Solo 401k

    September 22, 2021 at 8:17 am

    When working with Mysolo401k, do you do the 5500 for the client if there account is over $250k. If so, do you file it or does the client file it. Can they use the EZ5500 form?

  • Top SubjectReal Estate Investments,Solo 401k – 5500-EZ
    Top ForumsReal Estate Investments, Solo 401k – 5500-EZ

    Mike Grossman
    Top SubjectReal Estate Investments,Solo 401k – 5500-EZ

    September 22, 2021 at 8:34 am

    I have follow up questions: For the Solo 401ks, are there any additional form(s )which need to be potentially filed with the IRS besides the 5500 EZ?

    I understand mysolo401k will provide the 1099-R if there are conversions. Would we also report to mysolo401k other types of distributions and/or transfers made?

    In regards to the 1099-R: what if more than one conversions are reported to the mysolo401k platform during a tax year; will they be added and reported on one 1099-R or will multiple 1009-Rs be issued?

    Mike Grossman
    • George Blower

      Top SubjectPrivate: My Community Webinars,Mega Backdoor Roth Solo 401k
      Top ForumsPrivate: My Community Webinars, Mega Backdoor Roth Solo 401k

      George Blower

      George Blower

      Top SubjectPrivate: My Community Webinars,Mega Backdoor Roth Solo 401k

      September 23, 2021 at 8:08 am

      @Steve

      Steven D. Kurland

      Top SubjectTransfers/Rollovers,Solo 401k

      @MikeGrossman

      Top SubjectReal Estate Investments,Solo 401k – 5500-EZ

      Thank you for your good questions!

      QUESTION:

      When working with Mysolo401k, do you do the 5500 for the client if there account is over $250k. If so, do you file it or does the client file it. Can they use the EZ5500 form?

      RESPONSE:

      The client simply needs to let us know that the value exceeds $250k (since we don’t have access to the account) and we will then handle the Form 5500-ez as part of our service for no additional charge.

      QUESTION:

      I understand mysolo401k will provide the 1099-R if there are conversions. Would we also report to mysolo401k other types of distributions and/or transfers made?

      RESPONSE:

      A 1099-R will also be needed for distributions and transfers. Please complete the applicable online form to provide us the information to prepare the 1099-R form: Forms – My Solo 401k Financial

      QUESTION:

      In regards to the 1099-R: what if more than one conversions are reported to the mysolo401k platform during a tax year; will they be added and reported on one 1099-R or will multiple 1009-Rs be issued?

      RESPONSE:

      The amounts will be aggregated and reported on one 1099-r.

      QUESTION:

      I have follow up questions: For the Solo 401ks, are there any additional form(s )which need to be potentially filed with the IRS besides the 5500 EZ?

      RESPONSE:

      Please see more regarding the annual filing requirements below and let us know if you have any questions.

      Annual Solo 401k Filing Requirements:

      For a list of annual solo 401k deadlines, please click on the following.

      https://www.mysolo401k.net/solo-401k-deadlines/

      Also, once the total value of the solo 401k plan reaches $250,000 as of 12/31, the Form 5500-EZ is due to the IRS by July 31 of the following year.

      Therefore, if the value of your solo 401k plan is $250K this December 31, a Form 5500-EZ must be filed by July 31 of the next year.

      The total value as of 12/31 includes all assets and cash as well as all trustees account balances (e.g., both participants accounts—pretax, Roth, and after-tax) under the 401k plan.

      If you borrowed from the solo 401k plan (i.e., took a solo 401k participant loan), the balance of the loan as of 12/31 is treated as an asset not a liability so it must be included in the calculation to determine if the $250K threshold filing requirement has been met.

      The 5500-ez is included in our annual fee. See following link for list of services included in our annual fee. https://www.mysolo401k.net/solo-401k/solo-401k-pricing/

      Please see the following blog post pertaining to solo 401k deadlines and form 5500ez.

      https://www.mysolo401k.net/solo-401k-deadlines/

      https://www.irs.gov/uac/About-Form-5500-EZ

      Other potential repoting requirements:

      If you made 401k contributions, you should coordinate this with your tax adviser for reporting purposes.

      If you took 401k distributions or processed conversions (e.g. in-plan Roth conversions), please let us know so we can guide you through the process.

      Of course please let us know if you have any questions as we’re always here to help.

      Question: When do I need to make my Solo 401(k) Contributions?Answer:

      Contributions to a Solo 401k plan must be made by your business tax return due date or any timely filed extensions. For more information: Click Here

      Question:

      When does a Form 5500-EZ need to be completed?

      Answer:

      If your solo 401k plan balance exceeded $250,000 as of December 31, a Form 5500-EZ is due to the IRS by July 31. A Form 5500-EZ is used by the self-employed business owner to report on a yearly basis the total value of the Solo 401k plan; however, Form 5500-EZ does not need to be filed until the Solo 401k plan total assets exceed $250,000. Since we don’t have access to your funds, it is your responsibility to let us know if you would like us to assist in preparing the Form 5500-EZ. For more information on this please visit the following link and read our FAQ page on Form 5500-EZ: Click Here

      Question: When do I need a Form 1099-R?

      Answer:

      Anytime a plan participant or beneficiary takes a distribution from his or her self-directed solo 401k, IRS reporting requirements apply. 1099-R reporting also applies to in-plan Roth 401k conversions. Payers must send a Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., to the IRS and to the individual receiving the distribution. The form is due to the IRS by February 28. Again, Since we don’t have access to your funds, it is your responsibility to let us know. For more information please see the following link: Click Here

  • Top SubjectReal Estate Investments,Solo 401k – 5500-EZ
    Top ForumsReal Estate Investments, Solo 401k – 5500-EZ

    Mike Grossman
    Top SubjectReal Estate Investments,Solo 401k – 5500-EZ

    September 24, 2021 at 9:24 am

    Thank you George.

    In regards to the 5500EZ: Does this form get filed with the participant’s individual return or does your firm file it separately?

    For the 1099r, does your firm send it to the IRS and copy to the trustee/participant?

    Mike Grossman
    • George Blower

      Top SubjectPrivate: My Community Webinars,Mega Backdoor Roth Solo 401k
      Top ForumsPrivate: My Community Webinars, Mega Backdoor Roth Solo 401k

      George Blower

      George Blower

      Top SubjectPrivate: My Community Webinars,Mega Backdoor Roth Solo 401k

      September 24, 2021 at 2:24 pm

      1. For clients that need a Form 5500-EZ, we prepare the form and provide it to the client to submit directly to the IRS (it is not filed with the client’s personal or business tax return but rather separately).
      2. For clients that need a 1099-R, we prepare the form and provide it to the client for submission with the client’s tax return.

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