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

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



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 always recommend you consult with a tax advisor to determine the correct filing method.


What about Form 5500-EZ?

This form is required to be mailed in through physical mail, so Rocket Dollar helps you with Form 5500-SF that can be electronically filed.



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 401(k) Plan



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