What are the reporting requirements for a Self-Directed Solo 401(k)?

At Rocket Dollar, Solo 401(k)s over $250,000 in assets should file Form EZ-5500. It is optional for smaller accounts.

Reporting

Reporting for Self-Directed Solo 401(k) distributions is done using IRS Form 1099-R.

Form 5500-SF

If you have over $250,000 in assets in the plan, Form 5500-SF is required to be filed on an annual basis. Rocket Dollar will assist in filing this for you as a part of your compliance fee and service.

For advanced tax questions, we recommend you consult a tax advisor to determine the correct filing method.

What about Form 5500-EZ?

You are required to physically mail this form so Rocket Dollar helps you with Form 5500-SF which can be electronically filed.

Contributions

With a Rocket Dollar Self-Directed Solo 401(k), contributions must be calculated by you, not Rocket Dollar. Depending on the complexity of your salary situation, profit sharing, etc., you may want to consider contacting a financial advisor or CPA for tax advice, such as how to correctly pay yourself a self-employed salary to reach your yearly contribution or retirement goals.

You can read more about maxing out Solo 401(k) contributions here.

See our Solo 401(k) Plan