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.
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.
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.
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