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Plan Paperwork and Form-filing Requirements Q&A
Plan Paperwork and Form-filing Requirements Q&A
Jeff Nabers avatar
Written by Jeff Nabers
Updated over a week ago

Question 1: Does the Department of Labor regulation below apply to my Solo 401k?

“Up to now plans with less than 100 participants (“small plans”) were automatically exempt from this audit requirement. Under final regulations issued last year by the Department of Labor, such plans may still be exempt from having the accountant’s audit done. However, to have this requirement waived, small plans will now have to take four additional steps.

Do I have to have an independent audit and file a tax return?

Answer 1: These regulations apply to plans that are required to file Form 5500. Plans which cover non-owner employees must comply with many Department of Labor Regulations designed to make certain the plan administrator protects the assets of the plan as the fiduciary for the assets of the employees.

Your Solo 401(k) is automatically exempt from filing Form 5500, but must file form 5500EZ when and after the plan assets achieve a value of $250,000. As the plan administrator, you are responsible for filing form 5500EZ. You can use our complimentary 5500-ez generator and then review with your CPA prior to submitting it.

Question 2: My accountant wanted to know if I have taken a distribution from my Solo 401K trust account, who will supply the 1099R?

Answer 2: As the administrator of your Solo 401(k), you are responsible for filing Form 1099R whenever you direct distributions to be made from the Solo 401(k) trust. Your accountant should be able to prepare the Form 1099R for the plan for a fee, or you can find instructions for filing the Form 1099R from the IRS website here

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